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Slowing South Africa Inflation May Delay Start of Rate Hikes

  • Consumer price growth at 4.6% in July from 4.9% month earlier
  • Central bank turned less hawkish on interest rates after riots
A suspected looter inside a mall in Vosloorus, South Africa, on July 13.

A suspected looter inside a mall in Vosloorus, South Africa, on July 13.

Photographer: Marco Longari/Getty Images
Updated on

South Africa’s inflation rate fell to the lowest level in three months in July, giving the central bank more leeway to delay raising interest rates.

The monetary policy committee turned less hawkish on policy normalization at its meeting last month and warned that deadly riots in the eastern KwaZulu-Natal province and the commercial hub of Gauteng would likely slow the economic recovery.