South Africa inflation hits four-month high before rate meeting

South African inflation quickened to a four-month high in June, complicating the central bank's task as it prepares to review interest rates.

Consumer prices rose 3% from a year earlier, compared with 2.8% in May, Pretoria-based Statistics South Africa said on Wednesday in a statement on its website. The median estimate of 12 economists in a Bloomberg survey was 3.1%.

While inflation has now been near the floor of the central bank's 3% to 6% target range for nine straight months, the outlook is uncertain. That's likely to prompt policymakers to proceed with caution after reducing interest rates by 25 basis points to 7.25% in May.

Chinese deflation, a weaker dollar and uncertainty about how nations will respond to US President Donald Trump's tariff onslaught are making forecasting a nightmare, South African central bank Governor Lesetja Kganyago said last week.

"There are things that we are not sure about. We do not know in which direction they would go."

The MPC will announce its decision on July 31.