Africa-Press – South-Africa. Although inflation is still within the reserve bank’s target band of 3% and 6%, it’s well above the mid-point that the central bank generally aims for. Lower food costs have again helped to bring inflation down, as Stats SA records a second consecutive drop in the rate.
The inflation print for April came in at 5.2% from 5.3% in March.This was slightly lower than market expectations, which forecast inflation to remain unchanged.
Despite another drop in inflation, the rate remains sticky.
Inflation hasn’t dropped below the 5% mark since last August.
Although inflation is still within the reserve bank’s target band of 3% and 6%, it’s well above the mid-point that the central bank generally aims for.
Chief director for price statistics at Stats SA, Patrick Kelly, said that most food and non-alcoholic beverage sub-categories saw lower annual rates, with the exception of vegetables, fruit and hot beverages.
“On average, vegetable prices increased by 7.4% in the 12 months to April, higher than the 6.0% increase recorded in March. The annual rate for fruit rose from 3.3% in March to 4.5%, mainly driven by higher prices for bananas and apples.” The latest reading comes a week before the reserve bank’s monetary policy committee meets to decide on the repo rate.
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