South Africa's inflation rate dropped sharply in October to its lowest level since the peak of the COVID pandemic, data showed on Wednesday, buttressing expectations for another interest rate cut by the central bank this week.

Independent economist Elize Kruger said fuel and food price developments play a greater role in October, which is considered a low survey month. South Africa’s government-regulated petrol and diesel prices fell by more than R1/ l in October.

South Africa’s consumer food price inflation decelerated significantly to 2.8% in October, the lowest level recorded in more than five years, signalling a possible respite for households burdened by rising costs.