South Africa’s Consumer Inflation Stabilizes at 3.2% in February

South Africa’s consumer inflation held steady at 3.2% year-on-year in February, with month-on-month inflation increasing to 0.9%. Economists had projected a rise to 3.3%, still below the Reserve Bank’s target of 4.5%. The Central Bank’s upcoming monetary policy decision may pause the rate cuts due to economic and political risks.

In February, South Africa’s headline consumer inflation remained steady at 3.2% year-on-year, consistent with January’s figures, according to data from the national statistics agency released on Wednesday. Month-on-month inflation experienced an increase, rising to 0.9% in February compared to 0.3% in January. Economists had anticipated a slight rise in annual inflation to 3.3%, yet it remains significantly lower than the South African Reserve Bank’s target of 4.5%.

The South African Reserve Bank is scheduled to announce its next monetary policy decision on Thursday. This follows a trend of rate cuts in the preceding three meetings. Experts surveyed by Reuters speculate that the bank might pause its rate-cutting strategy due to potential risks stemming from U.S. President Donald Trump’s tariff policies and ongoing disputes within the ruling coalition regarding the national budget.

In summary, South Africa’s consumer inflation remained unchanged at 3.2% in February, with month-on-month inflation rising to 0.9%. Despite projections for a slight increase to 3.3%, it is still below the 4.5% target set by the Reserve Bank. The upcoming monetary policy decision may indicate a halt in the current rate-cutting trend due to external economic pressures and internal political challenges.

Original Source: money.usnews.com