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

SA’s manufacturing industry: challenges, risks and opportunities

South Africa's manufacturing sector recorded modest growth of 1.1% month-on-month in May, but the longer-term picture remains concerning. Since the Covid-19 pandemic, the sector has contracted by 13.4%, raising important questions about the future of industrial production, employment and economic growth. In this episode, we explore the factors contributing to…
13 Jul 6 min

US employment growth vs SA's job losses explained

In this podcast, STANLIB Asset Management’s Chief Economist, Kevin Lings, examines the latest US and South African employment data, exploring why the US economy continues to create jobs while South Africa's formal sector employment remains under pressure. In June, the US added 57,000 non-farm jobs, supporting steady economic growth despite…
6 Jul 10 min

Why process matters when markets test your patience

Markets are constantly evolving, testing investor conviction through volatility, changing sentiment and short-term uncertainty. In these moments, a disciplined and systematic investment approach can help investors remain objective and focused on their long-term goals. In this episode, Rademeyer Vermaak, Head of Systematic Solutions at STANLIB Asset Management, talks to Jeremy…
25 Jun 22 min

New US Fed chair shakes up monetary policy

In this podcast, STANLIB’s chief economist, Kevin Lings, discusses South Africa’s May inflation rate, which increased by 4.5% year-on-year, mainly due to the fuel price. He notes, however, that there are few signs of secondary inflation effects in key categories. Kevin also unpacks some of the important changes to US…
22 Jun 16 min