CPI inflation is down, but the repo is likely to go up again

Statistics South Africa yesterday announced August's consumer price inflation rate and it was good news because it now looks like inflation did peak in July and is now starting to slow. The decrease to 7.6% is largely attributed to the reduction of the fuel price in August. Listeners will remember that the price of petrol fell by R1.32 per litre. Unfortunately, the decrease in the inflation rate is not enough for consumers to immediately notice the difference in their grocery baskets. The prices of food and non-alcoholic beverages continued to rise by 11.3%. The question is whether this CPI data will affect today's repo rate decision. * The Economics Minute is supported by the NWU Business School.