CPI likely to remain unchanged

Monday, December 14, 2009

Pretoria - Economists are predicting that the November Consumer Price Index (CPI) is likely to remain within the inflation target range of between 3 and 6 percent.

"It is likely to remain unchanged at 5.9 percent as in October. This is due to the strong impact of last year's base effects," said Standard Bank senior economist Dr Johan Botha on Monday.

Statistics South Africa (Stats SA) is to release the monthly figure on Tuesday.

In October, CPI, which is used to measure inflation, fell within the Reserve Bank's inflation target band in 31 months.

Nedbank economist Carmen Altenkirch told BuaNews that the CPI is likely to remain within the band. "We are expecting it to come at 5.9 percent again," she said.

Both economists said CPI will fall outside its target range in the coming months due to among other things the looming electricity tariff hikes as a result of Eskom's application for a 35 percent tariff hike.