Mon. Nov 25th, 2024

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The rapid rise in the cost of essentials will heighten social friction in South Africa while increasing the probability of an interest rate hike when the central bank’s monetary policy committee (MPC) meets in July, analysts predict.

The latest figures from Statistics South Africa (Stats SA) show that annual consumer price inflation (CPI) increased to 6.5% in May from 5.9% in April. That is the highest recording since January 2017 and the first time in five years the reading has breached the central bank’s 3-6% inflation target band.

Stats SA will release the June CPI figures on 20 July, a day before the South African Reserve Bank’s (SARB’s) MPC is scheduled to meet to announce its next interest rates decision.

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By Joy

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