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South Africa's Producer Price Inflation moderated to 1% in February, below market expectations of 1. 3%. Despite this easing, analysts predict a gradual uptick throughout 2025, with food and fuel prices expected to lead the increase amidst global economic pressures and local challenges.
South Africa's economic landscape is experiencing varied inflationary pressures across different sectors, demanding attention from both policymakers and consumers. This analysis explores the key factors driving these changes and their implications for the economy. "
Experts share their insights on the anticipated interest rate decisions by the Monetary Policy Committee, considering economic pressures such as inflation and VAT increases.
Experts share their insights on the anticipated interest rate decisions by the Monetary Policy Committee, considering economic pressures such as inflation and VAT increases.
Outsurance Group's Australian subsidiary, Youi, may incur losses of $40 million due to Cyclone Alfred, while the company reports a significant increase in earnings for the past six months.
The postponement of South Africa's National Budget Speech, initially met with market uncertainty, led to positive market sentiment as it demonstrated the Government of National Unity's continued influence over fiscal policy. Despite initial negative reactions, the JSE recovered and the Rand stabilised, showing investor confidence in democratic processes.
Amidst all the noise, the signs suggest key US economic policies will be milder than those promised on Trump’s campaign trail, clearing the way for solid global growth.
South Africans are facing increasing financial pressure as high interest rates lead to home losses. This article explores the implications of the South African Reserve Bank's policies and the urgent need for rate cuts
Local banks thrive on high interest rates, but the burden falls on the poor, highlighting the urgent need for reform in monetary policy.
South Africa's inflation rate has dropped dramatically to 3. 8%, marking its lowest point since March 2021. As struggling households welcome this relief, Cosatu is pushing for aggressive interest rate cuts from the Reserve Bank.
South African financial markets show resilience, bouncing back from geopolitical tensions. Gold reaches a record $2700 per ounce, while the rand strengthens and oil prices ease. Investors eye potential interest rate cuts as inflation data looms
Kganyago said another failed claim was the 2022 argument that inflation would come down only through a severe recession, with a big increase in unemployment. He pointed out that the contrary happened.
For 2025/26 and 2026/27 financial years, municipal workers’ salary increases will be set at CPI plus 0. 75%, while 2027/28 and 2028/29 financial years it will be pegged at CPI plus 1. 25%.
Many investors are nervous that the decision by the US Federal Reserve (Fed) on interest rates is too late and is behind the cycle. It is feared that even if the US lowers rates over two weeks, it will have a limited effect on its economy that moves towards lower growth and higher unemployment.
The City of Cape Town has warned that the above-average wage increases proposed for its municipal workers would lead to a huge budget shortfall.
Robusta is likely to keep gaining market share because the variety is more tolerant to heat and disease than arabica - though both beans still face significant climate risks.
Nedbank economist Johannes (Matimba) Khosa said the faster moderation in inflation was encouraging, as it will ease the strain on household disposable income.
Data from Statistics South Africa (StatsSA) yesterday showed that inflation fell for the second month to 4. 6% in July, the softest since July 2021, down from 5. 1% in June after holding steady for 10 months in the 5–6% range.
This was the lowest inflation print in three years since July 2021, when the rate was also 4. 6%.
However, he said that since September last year, headline inflation had been fluctuating between 5% and 6%, with frequent monthly setbacks coming from fuel, food and services prices.
Nedbank expects that interest rates will remain flat when the MPC holds its meeting today.
The undercount, which by any measure is high. But this does not take away the validity of the science of adjustment.
The path back to the 4. 5% midpoint of the target band is likely to be bumpy and protracted, it says.
Wandile Sihlobo, chief economist at the Agricultural Business Chamber, said they expected this broad moderation path to continue for most of the products within the food basket over the near-to-medium term.
Economists said on Wednesday that when the Monetary Policy Committee meets next Wednesday, it is likely to keep interest rates on hold.