Inflation continues to slow
Updated | By Sibahle Motha
Consumer inflation slowed down even further in July, coming in at 4.6%.
This is down from 5.1% in June, marking the third successive month where inflation has come down.
It is also comfortably within the Reserve Bank's target rage for inflation, which sits at between 3 and 6%.
ALSO READ: Repo rate cut to benefit retailers, consumers
Statistics South Africa says the main reasons for the drop in inflation are the price for food and non-alcoholic beverages, household utilities and transport.
Efficient Group economist Francois Stofberg says the drop in inflation is good news for under-pressure consumers.
"Lower inflation is good news for the consumer. Stable price environment helps the economy grow and puts the buying power into the hands of the consumer", says Stofberg.
ALSO READ: Repo rate cut
Stofberg says today's numbers could also lead to a lowering of the interest rate.
"I think what this also shows is that we can expect another repo rate cut either in September, and if not September, in November", he adds.
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