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South Africa’s headline inflation rises to 4.8%

Published

1 year ago

September 20, 2023

South Africa’s headline inflation rose to 4.8% year-on-year in August from 4.7% in July but within the central bank’s goal range.

The South African Reserve Bank (SARB) has planned to sustain inflation at about the middle of that goal range, which is between 3% and 6%.

The latest inflation figure has, however, drawn reactions from some experts. According to economist, Elize Kruger, one or two of the Monetary Policy Committee’s five members may support another rate increase, given that inflation stopped declining in August.

“This economy remains firmly in ‘muddle-along’ mode, unable to gain sustainable momentum and the monetary policy stance is already sufficiently restrictive for the current state of growth and inflation,” she added.

Jason Tuvey, another economist, expressed scepticism that the SARB would restart tightening policy after deciding to “hold” it in July after 10 straight rate increases.

“The rise in inflation was modest and, while the headline rate is likely to hover around 5% over the coming months, we think that officials will have taken some comfort from the dip in inflation expectations in Q2,” he said.

For the seventh consecutive month, annual food and NAB inflation fell, easing from 9,9% in July to 8,0% in August. All food and NAB categories saw reduced annual rates in August, with the exception of fruit.

In comparison to July’s reading of 13,1%, the yearly rate for bread and cereal was 9,9%. Many goods, including white bread, brown bread, maize flour, and cereals, were less expensive in August compared to July. But, the price increase of 3.4% month over month for rice put a damper on the otherwise cheery data.

The South African economy grew by 0.4 per cent in the first quarter of 2023, while data for the second quarter has not been released by official data sources. The country continues its recovery efforts after power outages associated with load shedding defined the better part of 2022, and continues to define this year to angry reactions and social unease.

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Moroccan annual inflation rises to 0.8% in November

Published

18 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”