Food prices fall in South Africa

Food prices have edged lower in South Africa, while the impact of higher global oil prices has subdued, in line with expectations in October.

According to data released by Statistics South Africa on Wednesday, the country’s headline consumer inflation rose to 5.1 percent year-on-year in October.

Africa’s most industrialised economy is said to be in recession, upping pressure on the Central bank to cut rates to support growth.

During its last meeting in September, the bank said it was more concerned about the deteriorating inflation outlook and that rates were already accommodative.

On Tuesday, forward rate markets were pricing in a near 50-50 chance of a 25 basis points rate increase, but on Wednesday that figure was down to a 30 percent probability.

Central bank Governor Lesetja Kganyago said the bank wants inflation nearer 4.5 percent.