HomeHome SearchSearch MenuMenu Our productsOur products

Consumer inflation falls again, but this could be the last of significant drops

by , 18 March 2015

Earlier today, Stats SA released its consumer inflation data covering February. The data showed that yet again there was a large drop over the month.

But this could be the last of consumer inflation easing due to rand weakness and an uptick in the oil price.

Let's take a closer look at what the data revealed…

CPI fell to 3.9% in February

Stats SA showed that consumer inflation, measured by the consumer price index (CPI), “slowed sharply to 3.9% year-on year” last month, says Fin24. That’s down from the 4.4% reported for January.

The reported rate was slightly higher than economists forecast, notes BDLive. Expectations were for inflation to come in at 3.8%.

Inflation is now at its “lowest since March 2011,” says iAfrica. The current rate of inflation keeps it within the Reserve Bank’s target range of between 3% and 6%.

Yet looking at the data from month-to-month, inflation rose 0.6%, reports IOL. That’s after falling 0.2% between December and January.

The drop in inflation was primarily thanks to “a lower petrol price” and a slowdown in “food inflation,” adds BDLive.

Going forward it’s likely that inflation is going to start creeping higher

Nedbank said this is down to the “weaker rand dollar exchange rate, rising oil prices and higher food prices stemming from a poor maize crop,” says iAfrica.

Manisha Morar of ETM Analytics says they believe consumer inflation will stay in the target range until the middle of the year, reports BDLive. But over the second half it will creep up due to “a weaker rand and a significant electricity tariff increase”.

Eskom is hiking “electricity tariffs by 12.7% this year,” adds BDLive.

So positive news that consumer inflation has once again fallen, but it looks like the trend is going to start reversing.

*********** New release ************

Gobsmacked! I watched my uncle’s worldly possessions drive away on the back of a truck…

I remember watching TV with my cousins on the couch when two men in blue overalls barged into my uncle’s house and took everything he owned.

I will never forget the stunned silence as my family stood there – helpless.

Find out why it was the most valuable financial lesson I ever learnt!


Consumer inflation falls again, but this could be the last of significant drops
Rate this article    
Note: 5 of 1 vote

Related articles

Related articles

Trending Topics