SA inflation hits five-month high before rate decision

South Africa’s annual inflation quickened to a five-month high in October, a reading that’s unlikely to persuade the central bank to hike rates as the acceleration is likely to be temporary.

Read: SA inflation breakevens tumble as rates seen on hold

The consumer price index rose 5.9%, compared with 5.4% in September, Pretoria-based Statistics South Africa said Wednesday in a statement on its website. That exceeded the median estimate of 5.6% by 19 economists in a Bloomberg survey.

Read: Even small increases in food prices add up

While inflation moved further away from the midpoint of the central bank’s 3% to 6% target range, where it prefers to anchor expectations, softer oil prices and the rand’s appreciation against the dollar since the monetary policy committee last met on September21 may result in price-growth easing in the coming months.

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