South Africa Inflation Rises to 4.4% in August; Central Bank Expected to Hike Rates to 7.25%

South African headline inflation rose to 4.4% year-on-year in August, up from 4.3% in July but below the 4.5% forecast in a Reuters poll, Statistics South Africa reported on September 23. The smaller-than-expected increase is unlikely to sway the South African Reserve Bank's rate decision due later in the day. Most economists expect the SARB to raise its monetary policy rate by 25 basis points to 7.25% at approximately 1:00 PM GMT, as the central bank targets 3% inflation and focuses on forward-looking data. "This has no impact on the MPC decision," said Johann Els, chief economist at PSG Financial Services. Annual core inflation eased to 4.1% in August, below the 4.2% forecast. Food and non-alcoholic beverage inflation was among the lowest categories at 1.1%, with analysts citing strong crop production. The inflation uptick was driven by housing, utilities, transport, and financial services.