SA Inflation Dips to Eight Year Low

South Africa’s annual inflation rate has fallen to a six-month low in July. Consumer price growth has slowed to 4 percent from 4.5 percent in June, according to Statistics South Africa. The median estimate of 15 economists in a recent Bloomberg survey was 4.3 percent.   Statistics South Africa. Source : Stats SA Inflation has remained at or below the 4.5 percent midpoint of the central bank’s target band every month since December. This is the longest of such streak in more than eight years. The Monetary Policy Committee revised its inflation forecast for the year to 4.4 percent from 4.5 percent at its July meeting. The panel cut the benchmark interest rate by 25 basis points to 6.5 percent. A volatile exchange rate and could see a potential return to economic growth in the second quarter. But, this may limit the scope for further easing in 2019.