South Africa Inflation Falls Slightly More than Expected in September

South Africa’s headline consumer inflation fell slightly more than expected in September, to 3.8% year on year from 4.4% in August.

Data from the statistics agency shows that in month-on-month terms, inflation was at 0.1% in September, the same as a month before.

Economists polled by Reuters had forecast inflation would fall to 3.9%, well below 4.5%, the level preferred by the South African Reserve Bank (SARB).

Today’s reading could encourage the Reserve Bank to deliver another interest rate cut at its monetary policy meeting in November, after its first cut in more than four years last month.

The Bank struck a measured tone at its September meeting, saying that although inflation had fallen faster than expected, there were still risks to the outlook.