South Africa Inflation Rate Slows To 1-1/2-Year Low


South Africa's consumer prices increased by 5.1 percent year-on-year in June 2017, easing from a 5.4 percent in May and missing market expectations of a 5.2 percent gain. It was the lowest inflation rate since November 2015, as cost of transport, clothing and footwear, and restaurants and hotels rose at a slower pace.

Year-on-year, prices rose at a slower pace for: Transport (3.3 percent from 5.2 percent in May); clothing and footwear (3.8 percent from 3.9 percent); restaurants and hotels (4.1 percent from 4.8 percent); household contents and services (2.4 percent from 2.8 percent); recreation and culture (3.3 percent from 3.8 percent); and miscellaneous goods and services (7.1 percent from 7.3 percent). Meanwhile, inflation was steady for food and non-alcoholic beverages (at 6.9 percent); housing and utilities (at 5.7 percent); and education (at 7 percent); and accelerated for health (7 percent from 6.9 percent); and alcoholic beverages (3.3 percent from 3.1 percent). Prices of communication dropped 1.1 percent after falling 0.9 percent in May.

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

On a monthly basis, consumer prices increased 0.2 percent, after rising 0.3 percent in May and also below market consensus of 0.3 percent. Prices of housing and utilities jumped 0.9 percent, while cost of transport fell 0.3 percent and that of food showed no growth. 

Statistics South Africa | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/19/2017 8:28:20 AM