SA's CPI down
SA's CPI downLast week President Cyril Ramaphosa announced that he had appointed a five-member team to head his investment drive of attracting R1.2 trillion in new investments to the SA economy over the next five years.
Last week President Cyril Ramaphosa announced that he had appointed a five-member team to head his investment drive of attracting R1.2 trillion in new investments to the SA economy over the next five years. Should his plan work, this investment could add an additional 4.5% to the country’s GDP.
Statistics SA announced on Wednesday that South Africa’s annual consumer price inflation (CPI) rate for March had come in at 3.8%, which is 0.2% lower than the February figure. This represents the lowest annual CPI rate increase since February 2011. On average, prices increased by 0.4% between February 2018 and March 2018.
Markets stabilised over the past week following the previous weekend’s strike by US, British and French forces on Syrian facilities thought to be associated with chemical weapon manufacturing. The action saw no retaliation from Russia, which supports the regime of Syrian President Bashar al-Assad.
According to the International Monetary Fund’s April World Economic Outlook, the global economy grew by 3.8% in 2017, and is expected to grow at a 3.9% pace this year and the next.
The positive news filtered through to the markets and equity markets in general closed positive for the week. The JSE gained 1.87%, with both the financial and resources sectors gaining more than 2%.
Internationally, the S&P 500 gained 0.52%, while in London the FTSE gained 1.43%. The Nikkei also closed 1.76% higher. The Shanghai Composite Index was one of only a few indexes that recorded a loss, closing 2.77% lower.
The rand lost some value and traded above the psychological level of R12.00 to the US dollar. Oil prices reached three-year highs following a drop in US inventories and comments from Saudi Arabia targeting a price range of between $80 and $100 per barrel. The AA predicts a sharp rise in fuel prices, 41 cents per litre of petrol and 48 cents per litre of diesel, on the back of a weaker rand and higher oil price.
Statistics SA will announce its producer price index (PPI) figure on Monday (today), which will be a good indication of the expected April inflation rate.
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