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Improvement In South African Retail Sales

James Boston
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Improvement In South African Retail Sales

Retail Sales in South Africa are continuing to improve according to the latest data just released for the month of July. The key year on year metric is now showing at 2.4% compared to a growth of just 1.8% in the month of June, the market anticipated figure today was for a rise of 0.3% in this figure. The month on month reading now stands at 1.2% in comparison to a contraction in June of -0.4%, there was hope of just a moderate 0.15% rise today.

Earlier this morning data release by the Africa’s second largest economy showed that the rate of price inflation was continuing to pick up, despite this being at already elevated levels. The headline Consumer Price Index (CPI) is showing year on year growth of 6.4% to the month of August, this is a ten basis point increase on July’s 6.3% and surprised markets that had been expecting a fall in the rate of price growth to 6.2%. The month on month increase is now showing as 0.4%, this has moderated somewhat from July’s 0.8% rise but not by as much as the 0.2% change anticipated by economists.

Core CPI data, which tends to be more stable as it excludes the more volatile elements such as food and energy, has caused some surprise by jumping ten points, the year on year figure for August is now 5.8% which is up from July’s 5.7%, a level at which it was expected to remain. In a similar vein to the general CPI, the Core CPI month on month number is showing a slowing in the pace of price growth but less so than the markets had been hoping for, the latest reading for August is now reading at 0.3% inflation, this represents a moderation of the July reading of 0.5% but falls short of meeting the 0.2% target set by market analysts.

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