Stubborn food inflation spoils CPI numbers

Stubborn food inflation spoils CPI numbers

An economist says consumers won't feel the easing of inflation in their pockets for as long as food prices remain obstinately high. 

Inflation Photo

CPI slowed to 6.8 percent in April, down from the previous month's 7.1 percent.

April's figure is the lowest reading in 11 months.

Chief economist at Econometrix Azar Jammine says they were hoping inflation would have been much lower by now.

READ: Consumer inflation falls to 11-month low

"Food inflation which one hoped would start coming down several months ago in light of the declining in international food commodity prices, has if anything, increased until this latest figure and that has been due to the unexpected and unforeseen impact of load shedding in creating disruptions in the food supply industry." 

Jammine says despite the overall drop in inflation, he expects the South African Reserve Bank to raise interest rates again on Thursday. 

Expectations are that the repo rate will be hiked by 25 basis points.

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