South Africa Consumer Inflation Steady at 3.2% Year-on-Year in February

South Africa’s inflation rate remained unchanged at 3.2% year-on-year in February. Monthly inflation increased to 0.9%. Economists anticipated a slight rise to 3.3%, still below the 4.5% target set by the South African Reserve Bank, which may pause its rate-cutting cycle amid economic risks.

In February, South Africa’s headline consumer inflation remained steady at 3.2% year-on-year, as reported by the national statistics agency. This figure has not changed from January’s rate. Month-on-month inflation showed a rise, increasing to 0.9% in February compared to 0.3% in January.

Despite a slight anticipated increase in annual inflation to 3.3%, this figure continues to fall below the South African Reserve Bank’s target of 4.5%. The central bank is scheduled to announce its next monetary policy decision on Thursday after having implemented rate cuts in its previous three meetings.

Economists surveyed by Reuters indicate that the Reserve Bank may decide to pause its rate-cutting cycle, given the potential risks posed by U.S. President Donald Trump’s trade policies and ongoing disputes within the ruling coalition regarding the national budget.

South Africa’s consumer inflation held steady at 3.2% in February, while month-on-month inflation experienced a modest rise. Although economists expected a slight annual inflation increase, the rate remains below the Reserve Bank’s target. The upcoming monetary policy announcement by the Reserve Bank will be crucial, considering potential economic risks and internal political challenges.

Original Source: www.marketscreener.com