June inflation flat, bolstering case for rate cuts
South Africa’s consumer inflation was little changed in June as consumer demand remained weak, reinforcing the case for another interest-rate cut.
Headline consumer inflation was 4.5% year-on-year in June, unchanged from May and in the middle of the central bank’s target range, Statistics South Africa reported on Wednesday. Prices inched up 0.4% from 0.3% on a monthly basis.
The South African Reserve Bank cut its main lending rate to 6.5% last Thursday, as expected, but suggested future cuts were not a foregone conclusion despite calls for it to do more to support the flagging economy.
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