October CPI inflation

The CPI y-o-y inflation rate increased in October to 6.4% from 6.1% in September. This increase was mainly due to food inflation and linked to the sharp fall in Brent crude oil prices towards the end of last year. Despite rise in the CPI inflation rate, it is unlikely that the Reserve Bank will raise interest rates after its Monetary Policy Committe (MPC) meeting tomorrow. The CPI inflation rate is anticipated to come in lower in the following months due to the 47c/litre petrol price cut pencilled in for December.