No rate cut for foreseeable future: economist
The decline in annual inflation isn't likely to prompt a rate cut anytime soon, according to an economist.
"Although it encourages one to be confident that inflation will eventually decline, it is too early to say exactly when it will decline back close to the 4.5% mid point of the inflation target which is effectively the revere bank," says economist Azar Jammine.
Jammine described the easing of CPI in March as a surprise.
READ: Inflation eases for first time in 2024
Headline consumer inflation slowed to 5.3% from February's 5.6%.
"In March last year, overall prices rose very sharply, especially food prices, and in March this year, they didn't rise anywhere as sharply. As a result, the inflation rate fell.
"It actually fell even more than expected. Most people were expecting it to decline to 5.4 per cent. That took people by surprise. There had been expectations in recent times. Food inflation would escalate as a result of drought conditions."
ALSO READ: Mixed fuel price picture for May, says AA
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