South Africa’s annual inflation rate rose slightly less than expected ahead of a widely expected interest-rate hike.
Consumer prices increased to 4.4% in August from 4.3% a month earlier, Statistics South Africa said in a statement on its website on Wednesday. The median estimate of 18 economists in a Bloomberg survey was 4.5%.
Most economists in a separate Bloomberg poll see the central bank increasing interest rates to 7.25% from 7% when Governor Lesetja Kganyago delivers the decision at around 3 p.m. in Pretoria, in response to fresh price pressures from the Iran and Ukraine wars.
The conflicts continue to restrict supplies of energy, grain and fertiliser. Brent crude is trading around $99 per barrel, compared with an average price of around $85 a barrel when South Africa last deliberated on interest rates. Separately, El Niño weather patterns could hurt agricultural production, impacting food inflation.
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