Economy

South Africa: Core inflation momentum building

While South African March headline CPI came in slightly below consensus at 5.9% (BNPP and BBG median consensus at 6.0%) from 5.7% in February, the pick-up in core prices to 3.8% y/y (+0.8% m/m) from 3.5% a month earlier is the most important story here, we think.

PPS Investments media commentary: CPI for March 2022

Consumer price inflation increased by 5.9% year-on-year in March 2022, which was up from the 5.7% year-on-year increase the previous month.

BETI suggests strong economic growth in Q1 2022 despite higher inflation

The positive numbers emerging in the BankservAfrica Economic Transactions Index (BETI) over the past months, including March 2022, strongly suggest South Africa will experience good GDP growth in the first quarter of 2022, despite concerns about the inflation rate.

KPMG Global Economic Outlook: Commodity prices counteract impact of rising inflation & slowing growth in South Africa