Inflation drops slightly to 8.5%

This is 0.1 of a percentage point lower than the corresponding annual rate of 8.6% recorded in February 2009.

The CPI figure was widely expected by economists. Senior economist at Investment Solutions Chris Hart told BuaNews on Tuesday, 28 April, that he expected the CPI would be closer to 8%.

Nedbank Chief Economist Dennis Dykes also predicted the figure would be lower.

"We think it will be at around 8.4%. It could be slightly lower," said Dykes.

Commenting on the Producer Price Inflation (PPI) which will be released on Thursday, Dykes also predicted a slight improvement.

PPI for February came in at 7.3% year on year which is 1.9% lower than January's figure of 9.2% year on year.

Article published courtesy of BuaNews