afrol News, 27 January - The South African headline inflation rate in December 2009 has gone up to 6.3 percent and it is higher than the targeted range by the central bank.

According to figures released by Statistics SA today, the inflation rate for the period is higher by 0.5 of a percentage point from that of the previous month in the same year.

“The official inflation rate (i.e. the percentage change in the CPI for all urban areas in December 2009 compared with that in December 2008) was 6,3 percent at December 2009. This rate was 0,5 of a percentage point higher than the corresponding annual rate of 5,8 percent in November 2009,” the government statistics’ agency said.

Stats SA further stated that from November 2009 to December 2009 the Consumer Price Index for all urban areas increased by 0,3 of a percentage point.

Yesterday the South African Reserve Bank announced a stay in the repurchase rate at 7 percent, having made a cut for about six times since December 2008 to late last year as the economy experienced a slow into a full recession.

The repo rate has not been changed since September last year, when the policy decision in South Africa had to balance the effects of the economic meltdown with the stress on demand and production figures.

Many economists have applauded the decision of the Monetary Policy Committee (MPC) to leave the repurchase rate unchanged, saying this would guard against the aftershocks of the recession.

By staff writer

© afrol News

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