Cape Town, 19 June 2019 – Consumer price inflation (CPI) increased by 4.5% year-on-year in May 2019 and was slightly higher than the 4.4% year-on-year increase in the previous month. There were small changes to transport and the residual, in terms of year-on-year contributions. The latest increase marks the sixth consecutive month that year-on-year inflation was at or below the midpoint of the target band. Inflation last breached the top-end of the target band in March 2017.
Month-on-month inflation increased by 0.3%, compared to 0.6% in April. The contribution from transport for the month decreased from 0.4% in April to 0.1% in May. This has signalled a slowdown in month-on-month inflation after the 0.8% increase in February and March, and the 0.6% increase in April.
The ability of the South African Reserve Bank (SARB) to keep inflation in check has meant that the Reserve Bank Governor has come under further pressure to reduce interest rates. Following the recently reported disappointing GDP growth level and some questions around the mandate of the SARB, there may be an opportunity for the Governor to act decisively at a time when South African consumers need it most.
About PPS Investments
PPS Investments, established in 2007 is the investment manager within the 77-year old PPS Group, South Africa’s largest multidisciplinary society of graduate professionals with around 200 000 members. PPS Investments offers a comprehensive range of competitive investment solutions designed to empower investors at all life stages to plan, protect and provide for their financial goals. Having been the forefront of progressive, transparent investments since inception, the dynamic asset manager carefully designs its investments with the input and feedback from the graduate professional market – a client centric approach which both graduate professionals and general investors can benefit from. Its flagship is the PPS Portfolio range which offers diversification across optimally combined, complementary asset managers. PPS Group is mutual financial services company and shares 100% of its profits with its members. Thus, when PPS members invest with PPS Investments, whether in its single- or multi-manager funds, qualifying members benefit from increased profits into the PPS Profit-Share Account. http://www.ppsinvestments.co.za/
PPS boasts in excess of 200,000 members who enjoy access to a comprehensive suite of financial and healthcare products that are specifically tailored to meet the needs of graduate professionals.
PPS is the largest South African company of its kind that still embraces an ethos of mutuality, which means that it exists solely for the benefit of its members. Thus, PPS members with qualifying products share in the profits of PPS Insurance via annual allocations to the unique PPS Profit-Share Account and those who have qualifying PPS Provider products can also share in the profits of PPS Investments.
PPS membership provides access to the following tried, tested and trusted products and services: PPS Insurance, PPS Short-Term Insurance, PPS Financial Planning, PPS Investments and Profmed Medical Scheme. Visit www.pps.co.za for more information.
PPS is an authorised financial services provider.