Pretoria - Statistics South Africa (Stats SA) will today release the December Consumer Price Index (CPI) with economists predicting that it will increase to 6.4 percent year-on-year.
Market consensus is that CPI, which is used to measure inflation will come in at 6.4 percent from the 5.8 percent recorded in November when the figure fell within the Reserve Bank's target range of between 3 and 6 percent.
"It will probably come in at 6.4 percent due to the low base effects," Nedbank economist Carmen Altenkirch told BuaNews.
"On a year-on-year basis it will probably stay above the target not only in December but in January and February as well. In March it will come in below 6 percent," she predicted.
Standard Bank expects CPI to rise to 6.5 percent.
"We anticipate CPI to increase by 0.4 percent month-on-month, taking the annual increase to 6.5 percent year-on-year from 5.8 percent year-on-year in November. Risks to this outlook are to the downside, as we've pencilled in an increase in food inflation on the month, following a 0.1 percent m/m decline in November," said the bank.