South Africa Inflation Slows to Near 2-Year Low of 4.6%


Consumer prices in South Africa increased 4.6 percent year-on-year in July of 2017, below a 5.1 percent rise in June and in line with market expectations. It is the lowest inflation rate since September of 2015, mainly due to a slowdown in cost of food and electricity and a fall in fuel prices.

Year-on-year, prices rose at a slower pace for: food and non-alcoholic beverages (6.8 percent compared to 6.9 percent in June); housing and utilities (4.5 percent compared to 5.7 percent), namely electricity and other fuels (2.1 percent compared to 7.4 percent); transport (1 percent compared to 3.3 percent), mainly due to a fall in fuel prices (-3.6 percent compared to +2 percent); household contents and services (2.3 percent compared to 2.4 percent) and recreation and culture (3.2 percent compared to 3.3 percent)

On the other hand, inflation rose for miscellaneous goods and services (7.6 percent compared to 7.1 percent) and was steady for alcoholic beverages and tobacco (3.3 percent); restaurants and hotels (4.1 percent); education (7 percent) and health (7 percent). 

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy fell to 4.7 percent from 4.8 percent, the lowest rate since January of 2013.

On a monthly basis, consumer prices went up 0.3 percent, following a 0.2 percent rise in June. Cost increased for food and non-alcoholic beverages (0.3 percent); housing and utilities (1.2 percent) and miscellaneous goods and services (0.5 percent) but fell 1.5 percent for transport.

Statistics South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
8/23/2017 8:43:32 AM