SA’s inflation slows more than expected while US Fed flags looming rate cuts

Loading player...
SA’s headline Consumer Price Inflation (CPI) rate for July was surprisingly subdued, slowing to 4.6% from 5.1% in June. This reflects a slightly lower than expected electricity tariff hike and a slowdown in food price increases, as well as fuel price cuts. The slowing inflation trend makes it more likely that the SA Reserve Bank will start to cut interest rates in September.
In the US, signals from the Federal Open Market Committee and Federal Reserve chairman Jerome Powell indicate more confidence that inflation is trending downwards. It has also become clear that the US labour market is weakening. The longer the Fed waits to cut rates, the greater the risk that the economy will go into recession. STANLIB expects the Fed will implement a series of gradual interest rate cuts, starting in September and continuing into 2025. Click here to listen to the podcast.
26 Aug 2024 English South Africa Investing · Business News

Other recent episodes

Retail sales tempered as inflation bites into consumer pockets

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses Moody’s encouraging review of SA from stable to positive, although GDP growth is necessary to get a full upgrade. April inflation, which is up at 4%, reflects a sizeable increase in food prices and an adjustment to medical aid inflation, while…
25 May 12 min

Sustained high oil price puts pressure on US and SA monetary authorities

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses the upcoming SA Reserve Bank Monetary Policy Committee meeting, when a 25 bps interest rate hike is expected, as well as latest US inflation data. US CPI in April rose 3.8% y/y – and this does not yet fully reflect the…
18 May 10 min

US economy adds 300 000 jobs in two months

In this podcast, STANLIB’s Chief Economist, Kevin Lings, focuses on recent US labour market data, which is key to the performance of the economy. Labour market conditions appear to have improved in the last two months, with the economy adding an impressive number of jobs, despite the Middle East conflict…
11 May 4 min

US economic growth relies on AI investment

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses the below-forecast 2% q/q growth in US GDP in the first quarter, which indicates the economy is being largely sustained by AI investment. He also discusses recent global central banks’ decisions to hold interest rates, and how this is likely to…
4 May 10 min

US not yet suffering inflationary effects of higher oil price

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses the factors that influenced the surprisingly low increase in US PPI data for March, which is showing no second-round effects from tariffs and the higher oil price. However, he cautions it is still early to predict the direction of US interest…
20 Apr 14 min