The Consumer Price Index (CPI) accelerated to 5.8% year-on-year in January,
"Headline CPI annual inflation rate in January was 5.8%. This rate was 0.4% higher than the corresponding annual rate of 5.4% in
Market expectation was for CPI to come in at 5.7% year-on-year.
Prices increased by 0.7% between
Between December and January, the food and non-alcoholic beverages index increased by 1.6%, while the transport index increased by 1.2% and that of miscellaneous goods and services increased by 0.5%.
"The latest figures highlight the inflationary pressures emanating directly from the weaker currency as the monthly rise mainly stems from higher food and fuel prices.
Despite little evidence so far of second round effects, inflation is likely to continue rising, breaching the
The bank expects the
The central bank is expected to keep rates steady until the second half of 2015 due to a weak economy and more settled markets.
The inflation outlook remains poor with the threat of further rand depreciation in the short term. Economists therefore expect that the
At its first meeting of the year the MPC in January raised the repo rate by 50 basis points to 5.5%. - SAnews.gov.za
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