South Africa Inflation Rate Edges Up To 5.4%


Consumer prices in South Africa increased 5.4 percent year-on-year in May of 2017, higher than 5.3 percent in April which was the lowest rate since December of 2015. Figures came above market expectations of 5.3 percent due to rising cost of food and non-alcoholic beverages and transport.

Year-on-year, prices rose faster for food and non-alcoholic beverages (6.9 percent from 6.7 percent in April); transport (5.2 percent from 4.6 percent); health (6.9 percent from 6.5 percent); alcoholic beverages and tobacco (3.1 percent from 2.9 percent) and recreation and culture (3.8 percent from 3.6 percent). In contrast, inflation was steady for housing and utilities (5.7 percent); miscellaneous goods and services (7.3 percent); education (7 percent); household contents (2.8 percent) and slowed for restaurants and hotels (4.8 percent from 6.4 percent); health (6.5 percent from 6.2 percent) and clothing and footwear (3.9 percent from 4 percent). 

Annual core inflation which excludes cost of food, non-alcoholic beverages, petrol and energy was steady at 4.8 percent, the lowest rate since January of 2013.

On a monthly basis, consumer prices increased 0.3 percent, after edging up 0.1 percent in April and higher than expectations of 0.2 percent. Food and non-alcoholic beverages (0.5 percent) and transport (1.2 percent) made the only upward contributions. 

Statistics South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
6/21/2017 8:32:44 AM