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Johannesburg - The annual inflation rate was unchanged in September from the previous month, remaining within the South African Reserve Bank's (Sarb's) target band.
The inflation rate was steady at 4.6% in the month, the Pretoria-based statistics office said on Wednesday. The median estimate of 26 economists surveyed by Bloomberg was 4.7%. Prices were unchanged on the month.
The Reserve Bank has taken a gradual approach in tightening monetary policy, raising the benchmark repurchase rate three times since the beginning of last year to 6%.
While the bank forecasts inflation will breach the 3% to 6% target band next year, it’s also trying to support an economy that contracted for the first time in more than a year in the second quarter.
The bank “remains on a gradual normalisation path and is of the view that monetary policy remains accommodative,” deputy governor Daniel Mminele said in a speech on Tuesday.
“The monetary policy committee has to achieve a fine balance between realising its core objective, and not unduly undermining growth in the short term.”
Core inflation, which excludes food, non-alcoholic beverages, petrol and electricity costs, was also unchanged at 5.3% in September.
