JUST IN: Inflation continues downward trend to 4.6%

Johannesburg – South Africa's consumer price inflation dropped to 4.6% in July from 5.1% the previous month, helped by a large petrol price decrease.

Statistics SA announced on Wednesday that the downward trend was continuing, with the month-on-month inflation increasing only 0.3% in July.

Contributions to the monthly consumer price inflation include food and non-alcoholic beverages by 0.1 of a percentage point in July. The index increased 0.3% month-on-month (m/m).

Transport contributed -0.2 of a percentage point in July. The index decreased by 1.5% m/m.

Housing and utilities contributed 0.3 of a percentage point in July. The index increased by 1.2% m/m.

Miscellaneous goods and services contributed 0.1 of a percentage point in July. The index increased by 0.5% m/m.

The consumer price index (CPI) for goods increased by 3.4% for the year, down from the 4.7% reported in June. The CPI for services increased 5.6% year-on-year, up from 5.5% in June. 

TreasuryOne said the latest numbers could see a possible further interest rate cut in September.

The rand did not react much to the data, with the USDZAR currently still trading around R13.23/$. The local unit was trading at R15.59/€ and R16.95/£.

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