South Africa’s inflation at three-year low.

Inflation retreated to its lowest level in three years last month. In February it fell back inside its official 3% to 6% target range. The annual increase of 5,1% last month was the lowest since a revamped basket of goods and services was introduced in the consumer price index January last year. Using the previous consumer price index (CPI) it was the lowest rise since February 2007.

Inflation is expected to decline further in the months ahead as inflation is likely to fall below 5% as early as April, supported by Rand strength, relatively weak demand and easing food price pressures according to an Investec economist.

During the month itself inflation rose by 0,8%, the data from Statistics SA showed.

http://www.businessday.co.za/articles/Content.aspx?id=107331

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