September inflation cools to 4.1%, but bread, electricity show large rises

Annual headline consumer price inflation decreased to 4.1% for September, down from 4.3% in August, according to Stats SA.

This is in line with the projections of analysts, and within the target range of between 3% and 6% set by the SA Reserve Bank. Ahead of Wednesday's announcement, Investec projected September inflation to come in at 4.2%.  

Food prices increased by 3.7%, slightly lowed than the 3.8% in August. The costs of bread and cereals rose by 8.5%. 

Electricity was 11.8% more expensive, while wine costs rose by 10.2% year-on-year.  

In a snap note on Wednesday, TreasuryONE said the print lifts the prospect of a rate cut in November, but the cautious nature of the SA Reserve bank could also mean the rate stays unchanged. The rand dropped 5cents against the dollar on the back of the announcement, but at 10:30 was again trading back at R14.65 to the greenback. 

A Tesco store


ZAR/USD
16.26
(-0.84)
ZAR/GBP
21.08
(-0.54)
ZAR/EUR
19.29
(-0.74)
ZAR/AUD
11.88
(-0.56)
ZAR/JPY
0.16
(-1.02)
Gold
1952.90
(+0.34)
Silver
26.91
(-0.38)
Platinum
933.00
(+0.05)
Brent Crude
43.78
(+2.41)
Palladium
2340.50
(+0.71)
All Share
54741.07
(-0.54)
Top 40
50461.33
(-0.47)
Financial 15
9852.59
(-2.03)
Industrial 25
72620.82
(-0.99)
Resource 10
55549.42
(+0.78)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1289 votes
It depends on how the funds are used.
73% - 8600 votes
No. We should have gotten the loan elsewhere.
16% - 1892 votes
Vote