Inflation increased only 5.5% y/y during June (consensus expectation was 5.7%) from 5.6% y/y during May. It seems the weakness in demand still trumps the depreciation of the rand when it comes to inflation. Nevertheless, we expect rand weakness in 2013 to contribute as much as 1% to domestic inflation in 2014, but this might still not bring about the upward adjustment in interest rates as the local economy remains fragile. - Merina Willemse
Posted on: Wed, 24 Jul 2013 09:31:35 +0000
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