Inflation has been below the midpoint of the central bank's 3% to 6% target range since August 2024, allowing the SA Reserve Bank (SARB) to cut interest rates at four of its last five policy meetings.

Last month the SARB cut its main lending rate by 25 basis points to 7.25%.

It also lowered its inflation and economic growth forecasts for 2025 and 2026, stressing its preference for a lower inflation target.

In month on month terms inflation was at 0.2% in May, compared with 0.3% in April, data showed on Wednesday.

--Reuters--