Statistics SA said today growth eased from an upwardly revised 9,2% in May. In the three months to the end of June, sales increased by 7,2% compared to the same period the previous year, also at constant prices.
Analysts said household demand remained robust and resilient to higher interest rates. "People might have expected it to come off some more because of the central bank’s last rate hike," Russell Lamberti, economist at ETM.
The central bank raised interest rates by 50 basis points in June, adding to a 200 basis point rise from June last year. A statement is scheduled for tomorrow afternoon.
Analysts said the retail data will probably not prevent a further rate rise - all 16 economists polled by Reuters last week were unanimous Reserve Bank governor Tito Mboweni would announce a half point rise tomorrow.
"This (data) will not be the overriding concern for the SARB. The focus (will) be on the currency and the potential for further inflationary risks as a result of rand weakness," said Razia Khan, head of research for Africa region at Standard Chartered.
The rand fell to a four-and-a-half-month low versus the dollar and a near 11-month low to the euro today, adding to inflation worries.
Publisher: Business Day
Source: Business Day

