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Slowing South Africa retail sales ease inflation worries.

Publication: Market Africa Mid-East
Publication Date: 01-JUN-07
Format: Online
Delivery: Immediate Online Access

Article Excerpt
In June 2006, the South African Reserve Bank (SARB) was confronted by a consumer spending surge that threatened to destabilize the SARB's sound management of the country's inflation. Between June 2006 and February 2007, the SARB raised interest rates 200 basis points (2.0 percent). The SARB is South Africa's central bank.

The above graph showing month-to-month changes in retail sales (year-on-year) rate of growth chronicles the result of the SARB's aggressive actions. Obviously consumer spending built up substantial...

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