South Africa’s rate of inflation now stands at 9.4% year-on-year. The rate of 9.4% in the countries consumer price index excluding mortgage rate changes (CPIX). In January the rate was 8.8%. This is the eleventh consecutive month that the rate of inflation has been above the central banks target of between 3 – 6%.

The increase in the CPIX comes as no surprise as many had predicted this increase. With the increasing price of food and fuel there was really no way the inflation rate was not going to rise, it was a question of by how much. And it looks like it is not going to stop anytime soon with the proposed hikes in the price of electricity by Eskom. We maybe seeing this 9.4% figure rising past the 10% mark within the next few months.

Now that it is official that inflation in South Africa is at 9.4% this now presents the countries central bank with the decision of increasing interest rates or not. The MPC (Monetary Policy Committee) will be meeting in April to make a decision on interest rates. It is anyones guess really at this moment in time what the MPC will decide upon so we just have to wait and see.

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