South Africa’s April inflation slows more than forecast to 6.8% y/y

Boys help their father (not pictured) pack a vegetable and fruit stall as coronavirus disease (COVID-19) lockdown regulations ease at the Elias Motsoaledi Informal Settlement in Soweto, South Africa. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) – South Africa’s headline consumer inflation slowed more than expected in April to 6.8% year on year from 7.1% in March, data from Statistics South Africa showed on Wednesday.

On a month-on-month basis, consumer inflation was at 0.4% in April compared to 1.0% the previous month.

Analysts polled by Reuters had predicted April inflation of 7.0% year on year and 0.5% month on month.

The inflation figures come a day before the central bank is due to announce its latest interest rate decision.

The South African Reserve Bank (SARB) has hiked interest rates nine times in a row since November 2021 to try to tame inflation.

Analysts predict the SARB will raise its repo rate by another 25 basis points to 8.00%, but financial markets have been pricing in a larger rate hike.

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