South Africa's manufacturing sector remains susceptible to renewed weakness in the global economy, particularly in the euro area, through possible declines in exports, South African Reserve Bank said in its 2012 annual economic report on Monday.
The upward momentum in inflation started reversing early in 2012, slowing to 5.7 percent in May, it said.
Despite the recent moderation in domestic consumer food price inflation, food prices are expected to remain elevated during the remainder of the year due to cost-push pressures arising from elevated transport costs, high electricity and refrigeration costs, and wage increases, the bank noted.
The central bank last week reduced its key interest rate for the first time in more than one-and-a-half year to 5 percent, citing increased downside risks to the economy due to the global economic slowdown.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.