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Johannesburg - The increase in SA's consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank (Sarb) for its inflation target, was up 10.3% year-on-year (y/y) in December from 12.1% y/y
in November, Statistics South Africa (Stats SA) said on Wednesday.
Russell Lamberti, a market analyst at ETM, says the figure solidifies rate-cut expectations: "It's a fairly encouraging number. To a large extent the market is looking to the January number that will be released in February. Looking ahead to next week, although inflation is coming down quite nicely, we're still looking at a rate cut of 50 basis points rather than 100 basis points cause of ongoing vulnerability on the currency."
Efficient Group economist Fanie Joubert says the figure was much better than expected: "It shows that the cooling trend in
inflation is continuing and that is definitely a positive sign.
"This provides more scope for more interest rate decreases in the near future."
- I-Net Bridge