South Africa: SA Consumer Inflation Slows to 11-Month Low of 6.8 Percent, but Reserve Bank Still Expected to Hike Rates

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As winter sets in, the cost-of-living crisis is sweeping like a scythe across South African society and the harvest reaped will be bitter.

Annual consumer inflation in South Africa braked to 6.8% in April from 7.1% in March, Stats SA said on Wednesday. This was its slowest pace since May of last year when it was 6.5%. But food prices remain red hot, the rand is on the cusp of its recent historic lows, and the South African Reserve Bank (Sarb) is still expected to hike rates again on Thursday.

The slowdown in inflation was expected though still welcome. But especially on some fronts, this scourge remains stubbornly high despite a low growth or contracting economy and nosebleed levels of unemployment, factors which should pull it back to Earth. The combination of this trifecta of woes -- slow or no economic growth, high unemployment and persistent price pressures -- all adds up to stagflation, a state of economic affairs that is simply miserable.

Food inflation on an annual basis, for example, only slowed marginally, to 14.3% from its 14-year high in March of 14.4%. The dairy and egg product basket saw price rises of 14.5%, its highest read in over 14 years.

Vegetarians and vegans -- not to mention the many omnivores who like some greens with their meat -- are also getting...

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