JOHANNESBURG, Jan 30 (Reuters) - South Africa's targeted CPIX inflation rate accelerated to 8.6 percent year-on-year in December from 7.9 percent in November, slightly above forecasts, data showed on Wednesday. A Reuters poll had forecast CPIX would quicken to 8.5 percent.
Tomorrow will be very interesting. If Tito pauses tomorrow the Reserve Bank is essentially saying inflation targeting is off the table. And I really can't see they have much choice other than too pause.
It's exactly the point I was making last week! The moment of truth has arrived. Does the state of the economy get compromised, over the inflation fears exerted?! Stay tuned for tomorrow's broadcast to find out!
hmmm, a couple of issues to way on the MPC today/tomorrow. Stagflation? Rising inflation but fallig growth not good. Retail sales are in decline (as is PSCE) so things starting to bite. An then of course the old one that inflation is largely been drivenm by fuel and food - an rate increaes effect neither (well not completely true but close enough). That said the MPC has ignored the latter every time so far. Me thinks unchanged.
john agreed, they may have very valid reasons for not raising or for raising. But which ever they do one side or the other will bash him and accuse them of bowing to polotics. One good thing about Tito, he never bows to anybody on anything.