February CPIX rises to 9.4%
Thu, 27 Mar 2008SA's CPIX — which excludes mortgage costs — for February rose to 9.4 percent from 8.8 percent the previous month, Statistics SA said on Wednesday.
This is the first time in nearly five years that CPIX has come in at above nine percent.
And this is the 11th month running that CPIX has been above the SA Reserve Bank's (SARB) six percent upper target limit.
The data, however, is in line with expectations.
A Bloomberg survey put CPIX at 9.4 percent, according to the median estimate of 12 economists.
An I-Net Bridge survey found that CPIX was expected to surge to 9.4 percent year-on-year in February.
Headline inflation — the percentage change in the consumer price index — was 9.8 percent for February, Stats SA said.
The SARB increased interest rates four times last year. However, this did not bring CPIX back within the three to six percent target range.
The rand's poor performance against the US dollar, high oil prices and high food prices globally, as well as Eskom's proposed electricity price hike, have added to inflation's woes.
Fuel prices are expected to again rise next month and an 11 cents a litre hike in fuel levies, announced by Finance Minister Trevor Manuel in the Budget, takes effect in April.
Earlier on Wednesday, SARB Governor Tito Mboweni told Parliament's finance committee economic conditions would get tougher before they got better, and further belt tightening was needed.
"After we take out food and energy, inflation is trending higher, we have to tighten our belts," he said.
The central bank will make known its decision on interest rates on 10 April.
Nicky Weimar, senior economist at Nedbank, told Sapa the CPIX figure was as expected.
"There were no surprises — but the general trend is alarming. We see CPIX increasing further and peaking perhaps next month.
"CPIX will ease — but it'll remain high. Our economy is weakening," she said.
