What is the story about?
By
Anathi Madubela
JOHANNESBURG, March 18 (Reuters) - South Africa's annual inflation eased in February, falling to the central bank's target of 3%, but analysts said the slowdown could be temporary as the ripple effects of the U.S.-Israel war against Iran will show up in upcoming releases.
* Headline consumer inflation slowed to 3% year-on-year inFebruary, down from 3.5% in January, Statistics South Africadata showed on Wednesday. * Analysts polled by Reuters expected annual inflation wouldbe 3.1% in February. * The central bank's inflation target was lowered to 3% inNovember, and inflation was last at exactly 3% in June 2025. * A breakdown by Stats SA showed the main contributors toFebruary's inflation rate were housing and utilities, food andnon-alcoholic beverages, and insurance and financial services. * "This data largely predates the war on Iran though, aswell as the resulting spike in oil prices and the weakening ofthe rand exchange rate, both of which will be ... inflationary,"Elna Moolman, Standard Bank's head of South Africa macroeconomicresearch, said in a note. * Many economists expect South Africa's central bank toleave its main interest rate unchanged at its March 26 policyannouncement, whereas before the war they had expected a ratecut. * The bank maintained its repo rate at 6.75% at its lastmonetary policy meeting in January.(Additional reporting by Sfundo Parakozov;Editing by Alexander Winning and Barbara Lewis)
