rate cuts dashed

The January consumer price index minus mortgage costs inflation data, which came out much higher than expected yesterday, has put paid to any hopes of interest rates cuts this year.

The CPIX, used by the Reserve Bank for its 3-6percent inflation target, rose to 8,8percent year on year in January relative to December's 8,6percent year on year.

It was up 1,2percent month-on-month, after increasing 0,7percent month-on-month in December. This is the 10th month running that CPIX has been above the 6 percent target limit. - Lihle Z Mtshali