CONSUMER INFLATION rose in May, with CPIX (government’s measuring tool for interest rates) rising by 4.1% year-on-year (y/y) - from 3.7% in April. The core and headline price indices rose by 3.0% and 3.9%. Inflation pressure mainly emanated from the fuel and power, transport and food categories, according to Standard Bank economist, Elna Moollman. The categories clothing and footwear and furniture and equipment continue to record falling prices. “The inflation outlook has deteriorated somewhat,” she told FTW, “and Standard Bank is expecting two further interest rate hikes of 0.5 percentage points each.”
