South Africa’s headline CPI advanced 6.2 percent in the year to January 2010, slightly lower than December’s 6.3 precent. The increase in the inflation rate to above 6 percent during the past two months was expected because of petrol price changes a year ago.
Local retail sales picked up towards the end of 2009 but the sector still struggled to get out of recession. Fourth quarter real sales, seasonally adjusted, were slightly down on the third quarter.
South Africa’s government finances did not deteriorate further in December and the fiscal deficit for the year as a whole is still expected to be around 8 percent of GDP. Revenue continued to run lower than the revised budget while expenditure remained ahead of budget.