The increase in South Africa's consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank (SARB) for its inflation target, was up 13.0 percent year-on-year in September from 13.6 percent year-on-year in August, Statistics South Africa said on Wednesday.

CPIX was up 0.1 percent month-on-month after it increased 0.9 percent month-on-month in August.

This is, however, the eighteenth month running that CPIX has been above the six percent upper target limit.

Economists react to the CPIX data:

Nicky Weimar, Nedbank:

"It's certainly good news. It seems, although it is little early to tell, that August was the peak for CPIX. From the Reserve Bank perspective, it's a good trend and strengthens the case for a rate cut in the short term."

Mike Schussler, T-Sec:

"The numbers should be good news for the South African market. It will probably be good for bonds. The main thing is that the major inflationary pressure is out of the way.

"But the big question mark at the moment is the rand. Any more blowouts in emerging markets will pull the rand down further and that will mean further inflationary pressure next year."

Ian Marsberg, Absa:

"It's a good number, coming in at below what was expected. It shows that we have probably seen a peak in inflation last month and we can probably expect low inflation prints going forward."

Fanie Joubert, Efficient Group:

"The CPIX was lower than expected and I think that is a positive development. However, the rand only started weakening in October and is not included in the inflation figures yet.

"It's a positive trend and shows inflation reached a peak in August, but the weaker rand remains an upside risk.

"Rates will likely remain unchanged. It's a bit too early to start talking about rate decreases."

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