HEADLINE consumer inflation undershot market expectations in March, coming in unchanged at 5.9% year-on-year compared with February, data showed yesterday.
However, on a month-on-month basis, inflation quickened to 1.2%, compared with 1% in February, Statistics South Africa said.
Economists had expected inflation to hit the ceiling of the Reserve Bank's 3-6% target band for year-on-year inflation and quicken to 1.3% month-on-month in February.
"The 81 cents-to-litre fuel price increase exerted significant upward pressure on inflation on the month," economist Annabel Bishop, of Investec Group Economics, said.
"The differential between the repo rate and CPI inflation is -0.9%, with recent communications from the SARB supportive of this monetary stimulation given the weakness of economic activity."
Nedbank economist Busisiwe Radebe said: "The main driver of the monthly number was the transport sector.
"We believe rates will remain at current levels for the rest of this year."
Anisha Arora, emerging market analyst at 4CAST, said: "While it's a good thing that CPI remains within the SARB's 3-6% target band. Overall, the March CPI print was not much of a surprise given the pressure of petrol prices."
March inflation steady at 5.9%
HEADLINE consumer inflation undershot market expectations in March, coming in unchanged at 5.9% year-on-year compared with February, data showed yesterday.
However, on a month-on-month basis, inflation quickened to 1.2%, compared with 1% in February, Statistics South Africa said.
Economists had expected inflation to hit the ceiling of the Reserve Bank's 3-6% target band for year-on-year inflation and quicken to 1.3% month-on-month in February.
"The 81 cents-to-litre fuel price increase exerted significant upward pressure on inflation on the month," economist Annabel Bishop, of Investec Group Economics, said.
"The differential between the repo rate and CPI inflation is -0.9%, with recent communications from the SARB supportive of this monetary stimulation given the weakness of economic activity."
Nedbank economist Busisiwe Radebe said: "The main driver of the monthly number was the transport sector.
"We believe rates will remain at current levels for the rest of this year."
Anisha Arora, emerging market analyst at 4CAST, said: "While it's a good thing that CPI remains within the SARB's 3-6% target band. Overall, the March CPI print was not much of a surprise given the pressure of petrol prices."
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