Expectations are high for a sharp interest rate cut when the Reserve Bank meets on February 5, after official figures revealed consumer price inflation has slowed to a nine-month low.

Statistics SA said the CPIX measure slowed to 10.3% year-on-year in December, down from 12.1% in November. Meanwhile the CPI measure dipped to a one year-low of 9,5 percent.

In January the CPIX will be replaced as the targeted measure for monetary policy, with a new consumer price index (CPI), which will reduce the weighting of food, the largest driver of inflation.

Analysts have predicted that the central bank could cut interest rates by as much 100 basis points next week, though the conservative estimate is for a 50 basis points cut.

Last month the repo rate was cut by 50 points to 11.5%.