South Africa's inflation dropped sharply in September, hitting its lowest level in more than three years and bolstering expectations for another interest rate cut by the central bank next month. Annual consumer price inflation slowed to 3.

JOHANNESBURG (Reuters) - South Africa's headline consumer inflation fell slightly more than expected in September, to 3.8% year on year from 4.4% in August, data from the statistics agency showed on Wednesday. In month-on-month terms inflation was at 0.1% in September, the same as a month before.

South Africas Inflation Overview South Africas headline consumer inflation decreased to 3.8% year-on-year in September, down from 4.4% in August, as reported by the national statistics agency on Wednesday.

Consumer prices in South Africa have plummeted to the lowest level in 4-and-a-half years, dipping below 4% year-on-year as transport inflation continues to ease. According to data from Statistics South Africa (StatsSA), the annual inflation rate fell for a fourth consecutive month to 3.8% in September, down from 4.4% in August.

Economists expect good news for inflation today – with some expecting an even bigger cut to interest rates in November.

South Africa's central bank governor, Lesetja Kganyago, said on Thursday that the country could move to a lower inflation target at little cost.

South Africa’s annual inflation rate fell below 4% for the first time in more than three years bolstering the case for policymakers to continue cutting rates.