Economy

FNB/BER Consumer Confidence Index (CCI)

Beware the CPI trap!

There is nothing like a good inflation outlook debate to get economists and financial analysts fired up. Many who watch the US financial markets are adamant that the combination of fiscal stimulus and post-pandemic demand and supply factors will result in a sharp spike in consumer inflation in that country, with all manner of nasty side effects, not least of which higher interest rates. On the domestic front, the outlook for inflation is more benign. Statistics South Africa reported a below expectation 2.9% year-on-year growth in consumer price inflation (CPI) for February 2021, expanding to 3.2% growth year-on-year for March.

What does the impact of the lower contribution to the GDP mean for agriculture?

Although contribution was muted in the 1st quarter, this is a temporary blip given the generally huge production outlook across most of the agriculture commodities.

South Africa's 1Q21 GDP growth exceeds consensus expectations

The economy’s GDP officially grew by 4.6% q/q at a seasonally adjusted and annualised rate (saar) in 1Q21, following downwardly revised growth of 5.8% q/q (previously: 6.3% q/q) seasonally adjusted and annualised.