South Africa’s consumer inflation rate rose to 3.0% year-on-year in December, falling short of economists’ expectations of a 3.2% increase.
The December inflation rate was up from 2.9% in November, but still well below the South African Reserve Bank’s (SARB) target of 4.5%.
On a month-on-month basis, inflation was 0.1% in December, compared to 0.0% in November.
The lower-than-expected inflation rate supports the case for further interest rate cuts by the SARB, which has already cut rates at its last two meetings of 2024.
With inflation under control, many analysts expect the central bank to cut interest rates again at its first monetary policy announcement of this year, scheduled for next Thursday.
The rate cut would aim to boost economic growth and support the country’s recovery.
