SA’s inflation rate continues to fall; US economic outlook faces risks

Loading player...
SA’s inflation trajectory is encouraging, in the short term. The September inflation rate, at 3.8%, was down from 4.4% in August, with core inflation at 4.1%, and the impact of falling fuel prices should help to move inflation down to 3.1% in October. This trend should encourage the South African Reserve Bank to keep cutting interest rates, with a 25 bps reduction expected in November.
Various uncertainties face the US economy. If the US presidential election results in a Donald Trump win, as polls are indicating, it would be followed by policy change. Several indicators suggest the US economy is growing strongly, putting pressure on inflation and making future interest rate cuts less predictable. The key indicator to watch will be the strength of the labour market.
Click here to listen to the podcast.
28 Oct 2024 English South Africa Investing · Business News

Other recent episodes

US labour market stays solid; SA businesses still reluctant to invest

What do stronger-than-expected US jobs numbers mean for interest rates, markets, and investors? And why are South African businesses still holding back on investment despite ongoing efforts to stimulate growth? In this episode, STANLIB Asset Management's Chief Economist, Kevin Lings unpacks the latest economic data, including robust US job creation…
7 Sep 8 min

Warsh expected to follow tough talk on inflation with interest rate hikes

In this podcast, STANLIB Chief Economist Kevin Lings unpacks US Federal Reserve Chair Kevin Warsh’s recent speech at the Jackson Hole conference, including his reaffirmation of the Fed’s 2% inflation target and his approach to monetary policy guidance. Kevin also considers the resilience of the US economy and why Warsh’s…
31 Aug 12 min

South Africa inflation outlook: Could rates rise again?

In this podcast, STANLIB Chief Economist Kevin Lings unpacks the key drivers and risks shaping South Africa’s inflation outlook, as well as the recent slowdown in retail sales. While inflation improved in July, short-term risks remain, including higher fuel prices and the potential impact of El Niño on summer crops…
24 Aug 14 min

Cash management strategies in an uncertain interest rate environment

Higher oil prices, ongoing geopolitical tensions, and uncertainty around interest rates are creating new challenges for corporate treasurers. In this episode, STANLIB Senior Economist Ndivhuho Netshitenzhe joins Charlene Klöhn, Head of Corporate Cash Solutions, to discuss the economic outlook, interest rate trends, inflation expectations, and practical cash management strategies for…
19 Aug 19 min

US inflation, interest rates and SA’s rising unemployment

What do the latest US inflation data and South Africa’s rising unemployment rate mean for the economic outlook? In this episode, STANLIB Chief Economist Kevin Lings examines the latest US inflation figures, which eased to 3.4%, but remain above the Federal Reserve’s target. He also explores what this means for…
17 Aug 11 min