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

South Africa’s consumer inflation was stable at 3.2% year-on-year in February, with a month-on-month increase to 0.9%. Economists anticipated a slight rise to 3.3%, but inflation remains below the central bank’s 4.5% target. A monetary policy decision is expected soon, amidst concerns about U.S. tariffs and budget negotiations.

South Africa’s consumer inflation remained stable at 3.2% year-on-year in February, as reported by the national statistics agency on Wednesday. The month-on-month inflation increased to 0.9% for February, an uptick from January’s rate of 0.3%. Despite economists predicting a slight rise to 3.3%, inflation remains considerably lower than the South African Reserve Bank’s target of 4.5%.

The Reserve Bank is anticipated to announce its monetary policy decision on Thursday, following reductions in interest rates during its previous three meetings. A Reuters poll of economists indicates a potential pause in the rate-cutting cycle, influenced by concerns over U.S. tariffs instituted by President Donald Trump and ongoing negotiations within the ruling coalition related to the national budget.

In summary, South Africa’s consumer inflation has held steady at 3.2% year-on-year as of February, with a higher month-on-month rate of 0.9%. This figure is below the South African Reserve Bank’s goal, and economists are predicting a pause in rate cuts due to external economic pressures and internal budgetary disputes. The forthcoming monetary policy decision will be closely watched for indications on future rate adjustments.

Original Source: www.marketscreener.com