The South African economy is resilient. Consumer inflation has risen to 3.2% year-on-year in July from 2.2% in June, according to data received from Statistics South Africa on Wednesday.
The consumer price index on a month-on-month basis reached 1.3% in July from 0.5% from the previous month.
Core inflation, however increased to 3.2%in July from 3.0% in June. Meanwhile core inflation increased to 0.7% from 0.3% for July and June respectively month-on-month.
This could not sustain the Rand as it lost two days of stability. By 06.50% GMT, the Rand sold for 16.8550 to a dollar.
Local financial markets have shrugged off the latest bout of power cuts so far, but they highlight the obstacles to growth in Africa’s most industrialised economy.
Official forecasts are for a contraction of at least 7% this year, as a strict lockdown from late March piled pressure on local businesses and the coronavirus pandemic dented global demand for South African exports.
Copyright: News Central TV
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.