South Africa Inflation Rate Down To 2015 Low Of 5.3%


Consumer prices in South Africa rose 5.3 percent year-on-year in April of 2017, easing from a 6.1 percent increase in March and below market expectations of 5.6 percent. It is the lowest inflation rate since December of 2015, mainly due to a slowdown in prices of food and transport.

Year-on-year, prices rose at a slower pace for food and non-alcoholic beverages (6.7 percent from 8.7 percent in March), the lowest since December of 2015; miscellaneous goods and services (7.3 percent from 7.5 percent); transport (4.6 percent from 7.7 percent); alcoholic beverages and tobacco (2.9 percent from 3.2 percent); household contents (2.8 percent from 3.2 percent); recreation and culture (3.6 percent from 3.7 percent) and clothing and footwear (4 percent from 4.5 percent). In contrast, inflation was steady for housing and utilities (5.7 percent) and education (7 percent) and increased for restaurants and hotels (6.4 percent from 6.1 percent) and health (6.5 percent from 6.2 percent). 

Annual core inflation which excludes cost of food, non-alcoholic beverages, petrol and energy fell to 4.8 percent from 4.9 percent. It is the lowest rate since January of 2013.

On a monthly basis, consumer prices edged up 0.1 percent, below 0.6 percent in March and lower than expectations of 0.4 percent. The only upward contribution came from prices of miscellaneous goods and services (prices up 0.4 percent). In contrast, cost of food and housing and utilities was flat and transport declined 0.3 percent. 

Statistics South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
5/24/2017 8:54:28 AM