Inflation falls for third month in a row

Sumen

Sumen

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Source: http://www.fin24.com/Economy/alert-inflation-falls-for-third-month-in-a-row-20170719?isapp=true

Inflation decreased for the third month in a row in June, with the annual consumer price index (CPI) falling to 5.1% after a drop to 5.4% in May, Statistics SA announced on Wednesday.

"This is the third month in a row that we are back within the inflation target band," TreasuryOne said in reaction on Wednesday. "All eyes will be on the SA Reserve Bank's monetary policy committee tomorrow (on Thursday) to see if they make a move on interest rates."

The rand was 0.43% weaker against the dollar on Wednesday, trading at R12.95 against the greedback. It had earlier traded at a low of R12.89/$.

SARB's inflation target band is between 3% and 6%. The change in South Africa's interest rate is often done to keep inflation within this band. The repo rate is currently at 7%, with the bank's lending rate at 10.5%.

CPI increased by 0.2% month-on-month in June 2017.

Clothing and footwear decreased from 0.2 of a percentage point in May to 0.1 of a percentage point in June. The index increased by 3.8% year-on-year (y/y), Stats SA said.

Transport decreased from 0.8 of a percentage point in May to 0.5 of a percentage point in June. The index increased by 3.3% y/y.

Restaurants and hotels decreased from 0.2 of a percentage point in May to 0.1 of a percentage point in June. The index increased by 4.1% y/y.

GRAPH: CPI headline index and headline inflation (Source: Stats SA)

58eea7601358436c80923c7b67336052.jpg
 
Repo-rate will remain unchanged as we're within the 3 - 6%

I actually expect a rate cut to follow soon. But for now it will remain unchanged. We need to start stimulation consumer spending but the Junkstatus will hold us back from cutting rates.
 
I must be living in a different South Africa, because where I live inflation seems to be getting higher...
 
Yeah .... was listening to the retailers moaning about demand

The high levels of unemployment - the already high prices of relatively cheap imported goods tempering demand, the inability to secure credit ......

add to that the discussion on SAFM last light about direct digital marketing - it has grwon some 100X faster than bricks and mortar and helps the start ups to sell their stuff ....


Interesting stuff.
 
TEXTILE GUY said:
Yeah .... was listening to the retailers moaning about demand

The high levels of unemployment - the already high prices of relatively cheap imported goods tempering demand, the inability to secure credit ......

add to that the discussion on SAFM last light about direct digital marketing - it has grwon some 100X faster than bricks and mortar and helps the start ups to sell their stuff ....


Interesting stuff.
Click to expand...

We're between a rock and a hard place now.

If we can shake this Junkstatus thing and stimulate spending via a rate cut we could be in for some good times. Which is something this stupid ANC government can't comprehend. The issue now is even with a rate cut, people will be saving instead of spending due to the uncertain future. We're in a perfect storm now. You can't create growth without spending, you can't create jobs if there is no growth and/or spending. It's a going to be a rough ride for a while. Keep your jobs and save where you can ;)
 
lucifir said:
yeah, me too :mad:

wonder where I can get a visa to this utopia of stats SA
Click to expand...
The individual indices tell everything
Meat: 13,0%
Sugar, sweets and desserts : 17,4%
Hot beverages: 9,7%
Water and other services : 8,9%
Electricity and other fuels : 7,4%
Medical products : 7,3%
Medical services : 6,4%
Books, newspapers and stationery :6,9%
Package holidays : 23,8% :wtf:
Education(combined primary and tertiary) : 7%
Insurance: 8,1%
http://www.statssa.gov.za/publications/P0141/P0141June2017.pdf

There was only one positive IMO
Postal services and telecommunication services: -0,5%
Telecommunication equipment :-9,9%

Also the per-province inflation is telling:
Western Cape : 6,0%
Which is 1% higher than the national average.
 
Maybe, but I've had a couple of Wtf moments at the supermarket lately. Like how is under R20 for a bottle of All Gold tomato sauce "special". I'm pretty sure it was 14 or 15 bucks a year or so ago.
 
Pitbull said:
We're between a rock and a hard place now.

If we can shake this Junkstatus thing and stimulate spending via a rate cut we could be in for some good times. Which is something this stupid ANC government can't comprehend. The issue now is even with a rate cut, people will be saving instead of spending due to the uncertain future. We're in a perfect storm now. You can't create growth without spending, you can't create jobs if there is no growth and/or spending. It's a going to be a rough ride for a while. Keep your jobs and save where you can ;)
Click to expand...

LOL
 
Nick333 said:
Maybe, but I've had a couple of Wtf moments at the supermarket lately. Like how is under R20 for a bottle of All Gold tomato sauce "special". I'm pretty sure it was 14 or 15 bucks a year or so ago.
Click to expand...

Maybe 3 years ago. The specials 2 years ago was that price. More recently (aka a years ago it was R17 or R18).
 
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