September 21, 2022 08:17 GMT
SOUTH AFRICA AUG CPI +0.2% M/M (FCST +0.1%); JUL +1.5% M/M
SOUTH AFRICA AUG CPI +7.6% Y/Y (FCST +7.6%); JUL +7.8% Y/Y
SOUTH AFRICA AUG CORE CPI +0.2% M/M, +4.4% Y/Y (FCST +4.6% Y/Y); JUL +4.6% Y/Y
- South African headline inflation was largely in line with expectations in August, with CPI expanding by 0.2% m/m and +7.6% y/y.
- August marked the first month of slowing headline year-on-year inflation since January. The 0.2pp downside surprise was in annualised core reading will provide implies that broad-based price pressures have eased modestly.
- Whilst service prices edged upwards, goods inflation softened. Of the major sub-categories, only transport prices fell (-0.1% m/m) largely due to easing fuel prices.
- This applies further pressure to the SARB to continue aggressively tightening in the Thursday meeting, where a 75bp hike is largely expected despite signs of slowing growth materialising. See our comprehensive preview here.