SARB must not rush into interest rate cuts, economist warns
Econometrix economist Azar Jammine says the increase in the consumer price index (CPI) serves as a warning to the Reserve Bank not cut interest rates in November.
CPI rose to 5.1% in September, up from 4.8% in August.
Jammine says the figure is slightly higher than expected.
"The main reason was statical in nature. On a year-on-year basis there was a fairly sharp increase in the fuel inflation rate and that was the main reason for the overall inflation rate.
ALSO READ: CPI at an eight month low
"This does push the inflation rate over the 5% mark and acts as a warning to the Reserve Bank not to rush any further interest rate reductions."
The Reserve Bank's Monetary Policy Committee cut the repo rate by 25 basis points in July, from 7% to 6.75%.
The interest rate was subsequently left unchanged in September.