
US GDP data for Q4 2024 surprises on the upside, SA’s inflation rate is falling
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US Q4 2023 GDP data, in combination with latest core PCE data for December, shows that the economy continues to grow while inflation is falling, which is good news. In response, US equity markets rose strongly. In SA, the annual rate of inflation has dropped to 5.1%. That probably suggests to the South African Reserve Bank that high interest rates are having the desired effect, but it is likely to follow the trend set by global central banks in the timing of rate cuts.