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What the SARB is waiting for before it starts cutting the repo rate
Headline inflation softened to 5.2% in April, but the upside risks remain, particularly from food prices.
Conventional wisdom says that living expenses rise uniformly with inflation, so many financial plans are based simply on that. But analysing the spending patterns of retirees shows us that the data tells a different story.
Read moreHeadline inflation softened to 5.2% in April, but the upside risks remain, particularly from food prices.
The markets are pricing for a rate reduction next year, and headline inflation is expected to return to the midpoint of the target band only in the last quarter of 2025.
The drier El Niño weather pattern is emerging as one of the biggest risks to the outlook for food inflation.