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The South African Consumer Price Index (CPI) fell marginally to 5.9 per cent in August from 6 per cent recorded in July, according to a report released by Statistics South Africa, the country’s national statistics agency on Wednesday.

The inflation figure for August, which is the lowest rate recorded since December 2015, comes a day before the Reserve Bank of South Africa (SARB) announces its interest rate decision. On a month-on-month basis, inflation declined by 0.1 per cent compared to an increase of 0.8 per cent in the previous month.

“This number just gives them that room to temporarily leave rates unchanged, especially when you see what is happening with growth,” Busisiwe Radebe, an Economist at Nedbank Group, told Bloomberg today. “The SARB, for now, will take a wait-and-see approach to see what will happen with the rand.”

Core inflation – which excludes food, non-alcoholic beverages, petrol and energy – remained unchanged at 5.7 per cent compared to the previous month. On a month-on-month basis, core inflation rose 0.2 per cent from 0.6 per cent in July.

The rand traded at 13.7080 per dollar as at 5.45pm GMT, down 1.48 per cent from the previous day’s close.