Unaffordable food and fuel prices are raising developed market consumer inflation to multi-decade highs, while the Federal Reserve recently announced a 50-basis point hike in US interest rates from record lows. Thalia Petousis, portfolio manager at Allan Gray, discusses what this may mean for South African investors in terms of inflation, bonds and more.
By Jeff Schultz, Senior Economist at BNP Paribas South Africa While South African March headline CPI came in slightly below consensus at 5.9% (BNPP and BBG median consensus at 6.0%) from 5.7% in February, the pick-up in core prices to 3.8% y/y (+0.8% m/m) from 3.5% a month earlier is the most important story here,...
The latest MPC decision is the third successive increase since the SARB began its interest-raising cycle in November 2021 to deal with a deteriorating inflation outlook.
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