SA’s inflation rate keeps dipping, could prompt a Reserve Bank rates cut
Not everything in 2017’s been all that bad. The Rand, for one, is stronger than it’s been in over 20 months and data released by Statistics South Africa this week pointed to a drop in consumer inflation.
With the latest inflation figures sitting at 6.3%, 0.3% down from a year ago, and those in the know saying they’ll keep dropping; the general consensus is that South Africa is in for some financial relief as the year goes on.
So, why is everyone suddenly so optimistic? Well, the Rand is soaring on the back of stabilising global markets, renewed investor confidence in South Africa and a narrowing account deficit at just 1.7% of GDP – the best place it’s been in six years –.