South Africa: Inflation Rises After Nine Months of Falls

source: allAfrica
Business Day (Johannesburg)
Miriam Isa
28 January 2010

Johannesburg — INFLATION rose more slowly than expected last month, but breached its official 3%-6% target range for the first time since September, official data showed yesterday.

And the Treasury said it and the Reserve Bank were addressing “the adequacy and effectiveness” of inflation targeting, which has come under harsh criticism.

The annual rise in the consumer price index (CPI) targeted for monetary policy accelerated to 6,3% from 5,8% the previous month, just below consensus forecasts for a 6,4% increase.

This followed nine successive months of slowdown, including two with inflation within its target range for the first time since April 2007. Petrol price cuts a year earlier and last month’s fuel-price hike helped boost the annual increase through “base effects”.

Local markets shrugged off [continue reading]

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