Consumer Watch – January 2019

The negative trend in Consumer confidence abated in 4Q18, remaining flat on a q/q basis. CPI and PPI inflation fell -70bps and -160bps while Business Confidence (BCI) shed
-0.9 points in December following three months of gains. The Purchasing Managers Index (PMI) emerged above the 50-point neutral in December after four months of poor outcomes. A slight hike in fuel prices will come into effect in February, petrol and diesel are expected to increase by 7c/litre and 1c/litre respectively. The Rand closed the month of January weaker on a y/y basis but stronger m/m.