South Africa’s Consumer Inflation Remains Stable at 3.2% in February

South Africa’s consumer inflation held steady at 3.2% year-on-year in February, with a month-on-month increase to 0.9%. Analysts expected a rise to 3.3%, remaining below the central bank’s 4.5% target. The Reserve Bank is expected to announce its monetary policy decision soon, possibly pausing rate cuts due to external and internal economic pressures.

In February, South Africa’s headline consumer inflation was reported at 3.2% year-on-year, maintaining the same rate as the previous month, according to data from the national statistics agency. Month-on-month, inflation surged to 0.9%, compared to 0.3% in January.

Economists had anticipated a slight increase in annual inflation to 3.3%, which remains significantly below the South African Reserve Bank’s target of 4.5%. The central bank is scheduled to release its next monetary policy decision on Thursday, following three consecutive rate cuts in earlier meetings.

Analysts surveyed by Reuters suggest that the Reserve Bank may decide to pause its rate-cutting strategy due to potential risks arising from U.S. President Donald Trump’s trade tariffs and ongoing disputes within the ruling coalition concerning the national budget.

South Africa’s consumer inflation remained stable at 3.2% in February, with a notable month-on-month increase. The Reserve Bank’s upcoming monetary policy decision could halt the trend of rate reductions due to external economic risks and intra-governmental budget negotiations. Despite expectations for a slight rise in inflation, the figures continue to fall below the central bank’s target.

Original Source: money.usnews.com