Softer inflation ahead for SA consumers - economist
According to an FNB economist, South African consumers
should see softer inflation for the next few months before it changes course.
The consumer price index rose to 3% last month from 2.9% in November.
The main contributors were housing, utilities, miscellaneous goods and services, food, and beverages.
Koketso Mano, FNB Senior Economist, anticipates headline inflation will post 3.2% in January.
READ: Consumer inflation rises in December
"We should continue to see softer inflation in 2025, especially in the first half of this year. However, you would also see a steady rising or upward trend in inflation going into the second half of this year, which will be dominated by the fading base effect and improving demand.
"So, we anticipate headline inflation should rise from these 3% numbers to above 5% by the end of this year.”
Elna Moolman, head of Macroeconomic Research at Standard Bank, says the Reserve Bank can take comfort in subdued consumer-driven inflation.
"This should counteract any concerns about the inflation rate pressure that we could see from the current rand weakness.”
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