Year-on-year consumer inflation less mortgage costs (CPIX) slowed to 3.1% in February from 3.6% in January and 4.3% in December, Statistics South Africa reported on Wednesday.

This is the 18th successive month that CPIX has stayed within the Reserve Bank's government-set target range of between 3 and 6 percent.

According to Business Day, economists are confident that inflation will stay within this band, but expect it to rise to about 5% by the end of the year.

Despite the low inflation figure, higher global oil prices and a weaker rand are likely to prevent the Bank from lowering interest rates at its next monetary policy committee meeting, Business Day reports.

Factors contributing to the latest inflation figure included annual increases in the price indices for housing (0.9%) medical care and health expenses (0.6%), food (0.4%) education (0.4%), transport (0.2%) and fuel and power (0.2%).

These were counteracted by decreases in the price indices for clothing and footwear (-0.1%) and recreation and entertainment (-0.1%).

Stats SA said the headline inflation rate, or consumer price index (CPI), also dropped to 2.6% in February from 3% in January.

SouthAfrica.info reporter

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