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By way of illustration. Photo: Getty Images / Gallo Images
October inflation rose steadily to a seven-month high of 3.3%, data from Statistics South Africa shows.
Statistics South Africa released the October printing on Wednesday, which was in line with economists’ expectations.
On a monthly basis, inflation increased 0.3% in October, outpacing the 0.2% increase recorded in both August and September.
The main contributors to the annual inflation rate of 3.3% were food and non-alcoholic beverages, housing and public services, and miscellaneous goods and services. The annual inflation rate for goods was 2.6% and for services 3.8%.
In a note issued ahead of publication, FNB economists expected the 30c / l cut in the price of gasoline to keep inflation low. FNB expected inflation to remain unchanged from September at 3%. “Our expectations are that inflation will remain low for the rest of the year. Our preliminary forecast points to an average of 3% for the quarter. If we are correct, this means that average inflation for the year will be 3.2%” , the note reads. .
Investec economist Kamilla Kaplan similarly expected fuel price cuts to influence inflation levels. Investec forecast inflation of 3.2%.
The Bureau of Economic Research expected inflation to drop slightly to 2.9%.
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