Category Economy
SUB CATEGORIES General |  Budget 2015 |  Budget 2016 |  Budget 2017 |  Budget 2018 |  Budget 2019 | 

PPS Investments commentary on CPI for May 2019

19 June 2019 Luigi Marinus, Portfolio Manager at PPS Investments

Consumer price inflation (CPI) increased by 4.5% year-on-year in May 2019 and was slightly higher than the 4.4% year-on-year increase in the previous month. There were small changes to transport and the residual, in terms of year-on-year contributions. The latest increase marks the sixth consecutive month that year-on-year inflation was at or below the midpoint of the target band. Inflation last breached the top-end of the target band in March 2017.

Month-on-month inflation increased by 0.3%, compared to 0.6% in April. The contribution from transport for the month decreased from 0.4% in April to 0.1% in May. This has signalled a slowdown in month-on-month inflation after the 0.8% increase in February and March, and the 0.6% increase in April.

The ability of the South African Reserve Bank (SARB) to keep inflation in check has meant that the Reserve Bank Governor has come under further pressure to reduce interest rates. Following the recently reported disappointing GDP growth level and some questions around the mandate of the SARB, there may be an opportunity for the Governor to act decisively at a time when South African consumers need it most.

Quick Polls


Is 30 the new 65?


Yes, it is becoming inevitable that retirees need to save for a 30 year time horizon when it comes to retirement
No, why change a model that has been working for many years
At least if a retiree reinvests their pot of cash compound interest will resolve the longevity problem
A E fanews magazine
FAnews August 2019 Get the latest issue of FAnews

This month's headlines

Create designer policies through AI
Are advisers in a precarious position?
A claim, COIDA and a dog bite
Non-disclosure never an innocent fraud
Prescribed assets: The threat to pensions
Cannabis and the issue of trust
Getting the most from disability claims
Subscribe now