As Statistics South Africa Stats SA prepares to release the October Consumer Price Inflation CPI numbers on Wednesday, analysts anticipate that inflation could drop as low as 3 from the 3.8 recorded in September 2024.
They note that South Africas consumer price inflation has reached its lowest level in three years, presenting a strong case for another 25-basis point interest rate cut when the Reserve Banks Monetary Policy Committee MPC makes its rate announcement on Thursday.
Independent economist, Elize Kruger says inflation is expected to decline further supported by the drop in the fuel price recorded last month. I do expect the headline number to moderate to 3 on an annual basis that will be the lowest since February 2021 compared to the 3.8 in September.
Kruger adds, The main reason for this notable moderation is to be found in lower fuel prices. We had a R1,10 per litre drop in the petrol price at the start of October and similarly for the wholesale diesel price, on top of that we will likely see a further moderation in food price inflation and those two factors in combination will result in this notable decline on an annual basis.
