The Consumer Price Index (CPI) eased to 6% in September, Statistics South Africa (Stats SA) said today.
CPI rose to 6% year-on-year in September after rising to 6.4% in August. The 6.4% rise was above the Reserve Bank’s target range of between 3% and 6%.
The figure was in line with market expectation.
“On average, prices increased by 0.5% between August 2013 and September 2013,” said Stats SA.
The food and non-alcoholic beverages index decreased to 5.9% in September 2013 from 7.1% in August 2013, while the housing and utilities index was unchanged at 5.4% in September 2013.
The household contents and services index annual rate increased to 3.8% in September 2013 from 3% in August 2013, while the transport index decreased to 6.9% in September 2013 from 8.7% in August 2013.
Nedbank economists said that inflation seems to have peaked at August’s 6.4%. The bank expects inflation to continue to moderate into the fourth quarter but not to fall substantially below 6%.
“Inflation is likely to average 5.9% for 2013 as a whole. Today’s inflation figures do not alter our interest rate view. We expect that the Reserve Bank will keep rates unchanged well into 2014, to balance the still weak growth with inflation that is just below the bank’s upper target range,” said Nedbank economists.
The central bank will hold its last Monetary Policy Committee meeting for the year from the 19 to 21 November. – SAnews.gov.za
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