CAPE TOWN, February 17 (ANA) – The Consumer Price Index (CPI) for January on Wednesday came in at 6.2 percent, slightly above consensus expectations, as the effect of the drought started to be felt on food prices.
FNB’s senior industry economist Jason Muscat said this did not bode well for consumers or retailers, both of whom were already under pressure.
He said food and transport costs, in particular, were driving the number higher, a trend “expected to continue given the drought, slightly higher oil prices and persistent currency weakness”.
Muscat added that the number, which measures inflation, suggests that the Reserve Bank might again opt to raise interest rates by 25 basis points at next month’s meeting.
– African News Agency (ANA)
