South Africa’s headline consumer inflation increased to 3.0% year-on-year in June from 2.8% in May, according to data released by Statistics South Africa.
This rise was in line with economists’ predictions polled by Reuters, who had forecast inflation would reach 3.0%, the bottom of the central bank’s 3% to 6% target range.
In month-on-month terms, inflation was at 0.3% in June, compared with 0.2% in May.
The South African Reserve Bank is set to hold another rate-setting meeting next week, having cut its repo rate twice this year, including at its last meeting in May, in an effort to stimulate economic growth while keeping inflation in check.
The central bank’s ability to manage inflation and maintain economic stability will be closely watched by investors and policymakers, given the potential implications for the country’s economic growth and stability.
