50, 75, or 100 basis points?

Yesterday's consumer price inflation figure made economists' guesses about today's repo rate decision much more difficult. Against expectations, inflation increased slightly in October from 7.5% to 7.6%. Increases in the prices of food and transport continued to be the major drivers of inflation. This is a small increase, but unfortunately, it is a movement in the wrong direction. Economists agreed that the repo rate will be increased today, but this increase in inflation may cause a larger increase than would otherwise be the case. * The Economics Minute is supported by the NWU Business School.