South Africa inflation dips to 5.5 percent
11/20/2013 1:00:07 PM -
Johannesburg (AFP) - South African inflation slowed to 5.5 percent in October, after hitting six percent in September, official data showed on Wednesday.
The rate, published by the government statistics office CPI, was below the market expectation of an increase of 5.7 percent.
According to the bank, inflation is expected to average 5.8 percent this year compared with 5.7 percent in 2012.
The central bank set the target band for the rate at between three and six percent.
The inflation data will be followed by the interest rate announcement by the bank on Thursday.
"Interest rates are still likely to remain on hold deep into 2014," Nedbank analysts said in a statement.
"The latest figures confirm that inflationary pressures remain relatively benign despite rand weakness."