By Agency Reporter

Wednesday, 15 Dec 2010

South Africa‘s targeted consumer inflation quickened slightly more than expected in November, but analysts said it was still likely to ease in coming months and could allow another interest rate cut.

Statistics South Africa said on Tuesday that CPI accelerated to 3.6 per cent year-on-year in November from 3.4 per cent in October. The November CPI was above forecasts of 3.5 per cent, Reuters said on Tuesday.

On a month-on-month basis, CPI was at 0.2 per cent, unchanged from October and also above market expectations of a 0.1 per cent figure.

Petrol prices went up by 2.5 per cent in November.

Analysts said the uptick in inflation could be short-lived and another interest rate cut was still possible as a strong rand would help keep inflation in check.

”For the second consecutive month you‘ll see some upward pressure from petrol prices. But going forward, there‘s domestic and external considerations that we expect to come about and let inflation go lower,” said an economist at ETM, Kamilla Golda.

 

Source: Punch