Johanneburg, South Africa (4E) – The annual inflation rate in South Africa stayed at 6.6 percent in June, well above the target rate set by the natios’ central bank.
Last week, the South African Reserve Bank said that inflationary pressure continued to be the major reason for its decision to increase its key interest rate by 25 basis points to 5.75 percent. The bank said it intends to maintain raising rates while inflation continues to breach the target ceiling of 6 percent.
The rise in prices could bring increased pressure on a weak economy. The bank forecasts gross domestic product to grow by just 1.7 percent this year, below the slow growth rate of 1.9 percent recorded last year.
Economists predicted the June inflation rate to increase to 6.7 percent annually.