#BizPrime NUMBER OF THE DAY: 3.8%

91 views · Published 18 April 2018 · 1:22 · Indexed 20 September 2026

Channel: SABC News · 2018 · News & Politics

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Consumer Price Inflation or CPI came in 3.8% in March from 4% in February. That's the lowest annual inflation rate since January 2011. 
Inflation is the rate at which prices for goods and services are rising. 
And the Reserve Bank tries to control it because if prices go up quickly too quickly, goods become less affordable especially since salaries are usually adjusted only once a year. This number, fortunately, is well below the Bank's targeted ceiling of 6%. And it helped that, while Cape Town is suffering, drought conditions are over in the rest of the country, bringing down the cost of food. Recently the Reserve Bank brought down interest rates slightly and a low CPI number like this could suggest more relief for indebted consumers. But economists are saying it may in fact not be enough. 

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