Inflation cools to 5.1% in December

South Africa’s headline consumer inflation fell to 5.1% year on year in December from 5.5% in November, statistics agency data showed on Wednesday.

Read: SA inflation hits five-month high

Core inflation, which excludes food and fuel prices, was unchanged at 4.5%, the statistics agency said.

December’s headline reading remains within the South African Reserve Bank’s inflation target range of 3% to 6%.

Read: Rate cuts likely sooner rather than later

The South African Reserve Bank (Sarb) will announce a monetary policy decision on Thursday and is expected to keep its repo rate steady at 8.25%.

Read: SA inflation breakevens tumble as rates seen on hold

Sarb Governor Lesetja Kganyago has said he wants inflation to stabilise around 4.5%, the mid-point of its target band, before considering rate cuts.

Read:
Sarb to hold repo rate at 8.25% – poll
Even small increases in food prices add up
Food inflation is still high around the world