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South Africa inflation hits four-month high before rate meeting


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South Africa inflation hits four-month high before rate meeting

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Photo by Bloomberg

23rd July 2025

By: Bloomberg

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South African inflation quickened to a four-month high in June, complicating the central bank’s task as it prepares to review interest rates.

Consumer prices rose 3% from a year earlier, compared with 2.8% in May, Pretoria-based Statistics South Africa said on Wednesday in a statement on its website. The median estimate of 12 economists in a Bloomberg survey was 3.1%.

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While inflation has now been near the floor of the central bank’s 3% to 6% target range for nine straight months, the outlook is uncertain. That’s likely to prompt policymakers to proceed with caution after reducing interest rates by 25 basis points to 7.25% in May.

Chinese deflation, a weaker dollar and uncertainty about how nations will respond to US President Donald Trump’s tariff onslaught are making forecasting a nightmare, South African central bank Governor Lesetja Kganyago said last week.

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“There are things that we are not sure about. We do not know in which direction they would go.”

The MPC will announce its decision on July 31.

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