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Headlines CPI Inline, But Core Inches Ahead of Forecast

SOUTH AFRICA
  • South Africa CPI (Jul) M/M +1.5% vs. Exp. +1.5% (Prev. +1.1%)
  • CPI (Jul) Y/Y +7.8% vs. Exp. +7.8% (Prev. +7.4%)
  • Core CPI (Jul) Y/Y +4.6% vs. Exp. +4.5% (Prev. 4.4%)
  • Core CPI (Jul) M/M +0.7% vs. Exp. +0.6% (Prev. +0.6%)
No material reaction in USD/ZAR, with the pair holding inside the tight overnight range. Yesterday's hi-lo of 17.1413/16.9114 remains untested so far, with the FRA/JIBAR spread continuing to indicate a market that expects a further 75bps rate hike from the SARB at their Sept 22nd rate decision.

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