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Headline consumer inflation stood at 5.6% in February after reaching 5.3% in January, data from the statistics agency showed as of Wednesday (17th April). Even then, South Africa’s central bank which targets inflation of between 3% and 6%, is not expected to announce interest rate cuts soon
South Africa’s inflation fell to 5.3% year on year in March in a sign that Africa’s most industrialized economy was winning the battle to bring down prices.
Headline consumer inflation stood at 5.6% in February after reaching 5.3% in January, data from the statistics agency showed as on Wednesday (17th April). Even then, South Africa’s central bank which targets inflation of between 3% and 6%, is not expected to announce interest rate cuts soon.
The bank has kept its main interest rate unchanged at 8.25% for some months. The International Monetary Fund (IMF) cut its growth outlook for South Africa, taking its GDP growth projections for the country for 2024 to just 0.9%.
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It is a revision down from 1% the lender assessed in January. South Africa’s GDP outlook is the second lowest in Sub-Saharan Africa, with only Equatorial Guinea coming in lower (0.5%). South Africa’s economy, already weakened by the pandemic, has suffered multiple crises ranging from large-scale power and water cuts to floods and widespread infrastructure failures. The IMF says that the country will continue to battle inflation and high unemployment this year.
