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• Create Date July 24, 2024
• Last Updated July 24, 2024

Consumer and Producer Inflation (CPI) June 2024

Consumer inflation eased to 5.1 percent y-y in June 2024, with inflation excluding regulated administered, or government controlled prices, falling further to 4.4 percent. This means, excluding price adjustment in government services, inflation has been in the desired mid-target range of 4.5 percent for the past three months, since April 2024. Regulated prices increased by 9 percent y-y, from 9.7 percent in May. Critisism is mounting against the SARB for not lowering interest rates, despite the favourable movement in the CPI, as the SARB is patiently waiting for the US Federal Reserve to take the first move, since the SARB's core mandate is to protect the value of the currency.

The SARB lowered its forecast for CPI to 4.9 percent for 2024 (from 5.1 percent), 4.4 percent for 2.25 and unchanged at 4.5 percent for 2026. It however increased the forecast for energy prices for 2024 from an initial forecast of 13 percent to 13.5 percent. Economic growht projections were slightly lowered for 2024 to 1.1 percent (from 1.2 percent), and adjusted moderately higher for 2025 and 2026 to 1.5 percent and 1.7 percent. SARB thereby does not expect GDP growth to exceed 2 percent in the near future.

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