SA inflation rate drops to 3.8% paving the way for possible November interest rate cut

South Africa’s inflation rate fell to 3.8% in September, down from 4.4% in August, marking the lowest rate since early 2021. This is the fourth consecutive month of declining inflation, driven largely by a significant drop in transport costs.

Speaking on VOC Breakfast, Patrick Kelly from Statistics South Africa (STATSSA) explained that lower fuel prices were the primary factor behind the decrease.

“Fuel prices dropped for four successive months, and on average, we’re now paying 9% less for fuel compared to a year ago. Between August and September, fuel prices dropped by almost 4%, which significantly impacted the inflation rate recorded in September.”

Meanwhile, Kelly said that the decline has raised expectations of a 25-basis point interest rate cut when the Reserve Bank’s monetary policy committee meets next month.

Listen to the full interview below:

VOC News

Photos: Pexels

Picture of Ragheema Mclean
Ragheema Mclean

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