Inflation has risen in South Africa by 6.4 percent as revealed by official figures released on Wednesday.
Consumer prices rose from 6.3 percent this July according to Statistics South Africa.
The South African economy has witnessed a very slow growth and the economy has been upset by the rand which has weakened.
Calls have been made for the central bank to encourage the growth of the economy by introducing rate cuts.
According to an analyst at Rand Merchant bank, Carmen Nel the bank will probably stand pat for the moment.
“The evidence will continue to make them hawkish on the inflation outlook, but not enough to tighten policy any time soon” said Nel.
There have been calls to the bank to increase interest rates as this may ease price increases.
The bank is currently working on its monetary policy and is expected to conclude on September 19.
Head of premium clients at IG South Africa Travis Robson said: “What we’re expecting is for it to be unchanged, unchanged for now but possible guidance for change next year.”
Analysts in Africa say that inflation is expected to decrease between September and October following the cuts in petrol prices.
Another Analyst Kamilla Kaplan of Investec Bank said: “A continued absence of significant demand will argue against increases in the interest rate particularly as inflation will return to target”.
By United Democracy Movement Spokesman Mpiyezwe ..
By Leonard Koni. Harare, Zimbabwe. (News ..
Harare, Zimbabwe. – VICE-PRESIDENT ..
By Edward Makuzva. Harare, Zimbabwe. (News ..