Johannesburg (News Of The South) – The annual inflation rate in South Africa rose by half a percentage and now stands at 4.5 % .
For four years the inflation rate was as low as 3.9% on the back of low oil prices.
South Africa is considered to have Africa`s most advanced economy.
According to Nedbank the rate was now on an “upward trend” that will see it end the year at slightly below the central bank’s six percent upper target range.
“The increase will be mainly on the back of a weaker rand-dollar exchange rate as well as higher oil prices,” said Nedbank, one of South Africa’s largest lenders.
First National Bank’s economist John Loos said that “the resumption of a rise in CPI (consumer price index) inflation begins to raise the risk of interest rate hiking.”
The central bank unveils its quarterly interest rate decision on Thursday, but analysts predict rates will be kept on hold given weak domestic economic growth.
Africa’s second largest economy has kept its benchmark interest rate unchanged at 5.75 percent since July last year.
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