SA inflation raises rate hike scare

The annual CPIX measure - consumer prices minus mortgage costs - rose slightly above market expectations, and April's increase, of 6,3 percent. Statistics SA also said the headline CPI inflation rate rose by 6,9 percent year-on-year last month, a little below the consensus forecasts of 7,0 percent.

Analysts said with inflation still above the Bank's 3-6 percent target band, there may be need for more interest rate hikes.
"I think it basically confirms that the bias is still on the upside on interest rates ... the market is already pricing in a hike going into August," said Absa Capital macro strategist Monale Ratsoma.