South Africa’s annual inflation rate was unchanged in September from the previous month, remaining within the central bank’s target band, Bloomberg reported.
The inflation rate was steady at 4.6% in the month, the Pretoria-based statistics office said on Wednesday. The median estimate of 26 economists surveyed by Bloomberg was 4.7%. Prices were unchanged on the month.
The Reserve Bank has taken a gradual approach in tightening monetary policy, raising the benchmark repurchase rate three times since the beginning of last year to 6%. While the bank forecasts inflation will breach the 3% to 6% target band next year, it’s also trying to support an economy that contracted for the first time in more than a year in the second quarter.
The bank “remains on a gradual normalization path and is of the view that monetary policy remains accommodative,” Deputy Governor Daniel Mminele said in a speech on Tuesday. “The Monetary Policy Committee has to achieve a fine balance between realizing its core objective, and not unduly undermining growth in the short term.”
Core inflation, which excludes food, non-alcoholic beverages, gasoline and electricity costs, was also unchanged at 5.3% in September.
