Economy

Old Mutual Wealth comments on the Budget Speech

CPI for April 2025

The annual consumer price inflation was 2.8% in April 2025, up from 2.7% in March 2025. The CPI increased by 0.3% month-on-month in April 2025.

Budget 3.0: Large expenditure cuts needed to maintain fiscal consolidation

South Africa’s highly anticipated national budget trilogy finale will take place on 21 May and is likely to show a significant revenue shortfall of more than R75 billion following two failed attempts to increase Value-Added Tax (VAT).

CPI for March 2025

The consumer price index (CPI) edged 0.4% higher in March, but the year-on-year number decelerated to 2.7%. This is the lowest annual rate of inflation since 2020 and taken at face value should be enough to justify a cut at the next MPC meeting at the end of May.