ANC hopes lower inflation will lead to easing of repo rate
The ANC says the dip in consumer inflation has amped up expectations that an easing of the repo rate will follow.
The party's national spokesperson Mahlengi Bhengu-Motsiri says the lower inflation suggests a strong business case does exist.
"To hold off on further rate hikes and consider potential rate drops in the coming quarters.
Bhengu-Motsiri says easing consumer inflation to a two-year low is a welcome relief to consumers.
Stats SA says CPI fell to 4,7% in July, down from 5,4% in June.
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Bhengu-Motsiri says the decline in inflation sets us on the right path to economic recovery.
"The trade-off between inflation targeting the deflation risks is crucial for inclusive economic growth. The rise of inflation has been attributed to factors such as rising food prices, energy prices and the disruption of established trade patterns."
