South African consumer prices grew at a slower rate in July than in June, the country's statistics office said on Wednesday, affirming a trend of easing inflation and raising the likelihood of further interest-rate cuts.
Prices increased by 4.6% in July compared with a year earlier, while in June, annual inflation was 5.1%.
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Prices for food and beverages; housing and utilities; and transport all increased at a slower rate in July than in June, the statistics office said.
The South African Reserve Bank in July cut its main repo rate to 6.75% from 7%--its first rate decrease since 2012.
With the economy expected to grow just 0.5% this year, the continuing fall in inflation makes it more likely that the bank will lower rates again this year, analysts say.
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(END) Dow Jones Newswires
August 23, 2017 05:34 ET (09:34 GMT)