Hits&Misses

Inflation slows, but VAT goes up for the first time in 25 years

INFLATION moderated to 4.4% in January from 4.7% in December, data from Stats SA showed, raising hopes of an interest rate cut next month. Inflation, as measured by the annual change in the consumer price index, was expected to slow in January thanks to a drop in fuel prices.

ANGLO American Platinum declared its first dividend in six years after it cut net debt by 75% from a year earlier and more than doubled annual profit. The company, controlled by Anglo American, will pay R3.49 a share, resuming payouts halted in 2012 as it grappled with plunging prices for the metal.

A tough water-saving regime and the generosity of farmers have given Cape Town welcome respite from a severe drought and helped push back the dreaded Day Zero , when its taps are expected to run dry. The city moved its estimate for Day Zero to July 9 from June 4.

SOUTH Africa would increase VAT for the first time in more than two decades, Treasury said, as the government aims to cut the budget deficit and stabilise debt. VAT would increase to 15% from 14% from April 1, it said.

CREDIT ratings agency Fitch Ratings expected South Africa’s growth to improve slightly on the back of favourable investor and business sentiment, but warned that it was still too low. Fitch senior director of sovereigns Jan Friederich said GDP growth was expected to rise to 1.6% in 2018 and 2% in 2019, but warned that this would still be lower than the “BB” rating category median.

REVENUE for the four months to end-January had declined 5% from the same period a year earlier, Tiger Brands said in a trading update. The fast-moving consumer goods group said this was partly due to overall deflation of about 1%, but also the volume of food it sold falling 4%.