#cpi-inflation

#cpi-inflation

Tomorrow is a big domestic data day for South African markets, with the CPI and retail sales data to be released. The slew of data could set the tone for Thursday's SARB interest rate decision and the Q4 risk tone. Investors come in knowing the July CPI printed 3.5% YoY, a 10-month high. While it remains within the 3-6% band, it stayed above the stated ambition to target around 3% over time rather than just the midpoint of the 3-6% range.

Managed pubs outperformed restaurants throughout the first half of the year, and they again achieved the best growth of the Tracker's segments in July, at 0.6%. They were boosted by periods of warm weather in many parts of Britain, but comparisons were held down by the Euro 2024 football tournament, which brought millions of people out to watch games in pubs last July.

CPI inflation accelerated more than expected to 3.8% in July, driven by faster transport and hospitality inflation. Services inflation also rose to 5.0%, further cementing the existence of persistent price pressure in the economy.