• Conflict over water, coal

    SA's leaders have upped their support of the water-intensive coal industry, says Keith Schneider.

  • Cost of doing business

    The world can't afford the $4.7trn a year in environmental costs of business, says Mandi Smallhorne.

  • Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

All data is delayed
Loading...
See More

Shocker as inflation breaches Sarb band yet again

Mar 23 2016 10:43
Carin Smith

Cape Town - The annual consumer price inflation (CPI) was 7% in February 2016, up from 6.2% in January 2016 - when it breached the SA Reserve Bank's target range, Statistics SA announced on Wednesday.

This is the highest rate since May 2009 when the rate was 8%. The CPI increased by 1.4% month-on-month in February 2016.

Last week, Sarb governor Lesetja Kganyago announced a 25 basis-point hike in interest rates to 7% to help keep inflation in check. This was after Sarb's monetary policy committee (MPC) decided to hike the repo rate by 50 basis points to 6.75% at its last meeting in January this year. This means the prime interest rate is now 10.5%.

The latest data shows that food and non-alcoholic beverages increased from 1.1 percentage points in January to 1.3 percentage points in February. The index increased by 8.6% year-on-year. Alcoholic beverages and tobacco decreased from 0.5 of a percentage point in January to 0.4 of a percentage point in February. The index increased by 7.6% year-on-year.

Transport increased from 0.9 of a percentage point in January to 1.3 percentage points in February. The index increased by 8.7% year-on-year. Miscellaneous goods and services increased from 1.0 percentage point in January to 1.1 percentage points in February. The index increased by 6.8% year-on-year.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

sarb  |  interest rates  |  sa economy  |  cpi

 
 
 
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The upcoming petrol price hike is:

Previous results · Suggest a vote

Loading...