4 days ago
South African inflation steady in May, as expected
JOHANNESBURG, June 18 (Reuters) - South Africa's headline inflation rate remained at 2.8% year on year in May, unchanged from the previous month (ZACPIY=ECI), opens new tab as expected by analysts, statistics agency data showed, opens new tab on Wednesday.
Inflation has been below the midpoint of the central bank's 3% to 6% target range since August 2024, allowing the South African Reserve Bank (SARB) to cut interest rates at four of its last five policy meetings.
Last month the SARB cut its main lending rate by 25 basis points to 7.25% (ZAREPO=ECI), opens new tab.
It also lowered its inflation and economic growth forecasts for this year and next, stressing its preference for a lower inflation target.
In month-on-month terms inflation was at 0.2% in May, compared with 0.3% in April (ZACPI=ECI), opens new tab, data showed on Wednesday.
