Central Banks

S. African Inflation Dips Below Target on Eve of Rates Call

  • Consumer prices rose an annual 4.4% in August; est 4.5%
  • Traders are pricing in a 30-basis-point interest-rate cut
WATCH: Analysts expect the South African Reserve Bank to deliver its first-rate reduction since 2020 on Thursday. Jennifer Zabasajja reports.Source: Bloomberg
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South Africa’s annual inflation rate fell below the midpoint of the central bank’s target range for the first time in more than three years, adding impetus for it to start easing.

Consumer prices rose 4.4% in August, compared with 4.6% in the prior month, Pretoria-based Statistics South Africa said Wednesday in a statement on its website. That beat the 4.5% median of 19 economists’ estimates in a Bloomberg survey.