TSX gains after CPI shows US inflation rose 3%
Investing.com -- South Africa’s headline inflation rate rose to 3.4% year-on-year in September, up slightly from 3.3% in August but below the consensus forecast of 3.5%.
The inflation reading, which matched some analysts’ projections, could provide sufficient justification for the South African Reserve Bank to resume its monetary easing cycle in November.
The breakdown of inflation components showed mixed trends. Housing and utilities inflation increased from 4.3% to 4.5% year-on-year, while petrol prices swung from a 5.7% decline to a 3.2% increase compared to the previous year.
These upward pressures were partially offset by food inflation, which fell from 5.2% to 4.5% year-on-year. Core inflation, which excludes volatile items, edged up only marginally from 3.1% to 3.2% year-on-year.
Economists suggest the weaker-than-expected inflation figures may lead to the central bank lowering the repo rate, with projections indicating it could reach 5.75% by the end of 2026.
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