By Bhargav Acharya
South Africa’s inflation rose marginally in April due to higher food prices but remained below the central bank’s target range, statistics agency data showed on Wednesday.
Headline consumer inflation stood at 2.8% year-on-year last month compared with 2.7% in March, while in month-on-month terms, inflation was at 0.3% in April from 0.4% in March.
Economists polled by Reuters had forecast annual inflation would remain steady at 2.7%, below the central bank’s 3% to 6% target range.
Deputy Finance Minister David Masondo said last week that a new inflation target could be announced soon, leading to speculation that it could feature in Wednesday’s budget presentation.
South African Reserve Bank Governor Lesetja Kganyago has for years stressed his preference for a lower inflation target, saying it is needed to make the economy more competitive.
But Finance Minister Enoch Godongwana, who would need to sign off on a lower target, has been reluctant, citing
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