February inflation slips to 2.9%, below the Reserve Bank's target range
February inflation slipped to 2.9% year-on-year, from 3.2% reported in January.
Consumer inflation data, released by Stats SA on Wednesday, showed that this is the lowest reading since June 2020 when the rate was 2.2%.
The Reserve Bank's monetary policy committee is meeting this week and is due to make a rates announcement on Thursday. Economists previously expressed expectations for rates to remain on hold, but the latest inflation print is below the 3% to 6% target range of the SA Reserve Bank.
On a month-on-month basis, consumer inflation increased by 0.7%.
Stats SA noted that due to the ban on the sale of alcoholic beverages from retail outlets, restaurants, bars and hotels during January - there were no base prices available for comparison in February.
The Bureau for Economic Research (BER) expected inflation to edge lower to 3% year-on-year. "Core inflation dynamics are expected to remain benign," the BER said.
Investec economist Kamilla Kaplan forecasted February inflation to be impacted by fuel price increases, which will have been countered by lower contributions from miscellaneous goods and services. The February survey month captures price changes in medical insurance.
"The increase (on medical insurance) is likely to be lower than in 2020 as medical schemes implemented lower increases amid consumer financial pressure," said Kaplan. Investec projected February's print to be 3.2% year-on-year.
Among the main contributors of year-on-year inflation were food and non-alcoholic beverages - which increased 5.2%, housing and utilities - which increased by 2.6%, and miscellaneous goods and services which increased by 3.9%.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
