South Africa September Inflation Rate Eases to 4.1%

The annual inflation rate in South Africa edged down to 4.1 percent in September 2019 from 4.3 percent in August, slightly below market expectations of 4.2 percent and the 4.5 percent mid-point of the Reserve Bank's target range of 3-6 percent. Prices slowed mostly for housing & utilities and transport.

Year-on-year, prices rose less for housing & utilities (4.8 percent vs 5.3 percent in August), driven by actual rents (3.3 percent vs 4.0 percent) while cost advanced at the same pace for electricity (11.8 percent) and water supply (7.1 percent). Prices also slowed for transport (2.4 percent vs 3.1 percent), mainly due to cheaper vehicles (3.7 percent vs 3.8 percent) while fuels cost rebounded slightly (0.2 percent vs -0.5 percent); miscellaneous goods & services (5.7 percent vs 5.8 percent); household contents and services (3.2 percent vs 3.3 percent) and health (4.6 percent vs 4.9 percent). At the same time, inflation was steady for food & non-alcoholic beverages (at 3.9 percent); alcoholic beverages & tobacco (at 6.2 percent) and education (at 6.7 percent).

In contrast, prices went up at a faster pace for recreation & culture (1.4 percent vs 1.3 percent); clothing & footwear (2.2 percent vs 2.1 percent) and restaurants & hotels (3.3 percent vs 3.1 percent). 

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, fell to 4.0 percent in September from 4.3 percent in the prior month and below market expectations of 4.3 percent. It was the lowest rate since December 2011.

On a monthly basis, consumer prices increased 0.3 percent, the same pace as in the previous month and slightly below market expectations of a 0.4 percent gain. Prices slowed primarily for food & non-alcoholic beverages (0.3 percent vs 0.5 percent) and transport (0.2 percent vs 0.3 percent) while rose further for housing & utilities (0.4 percent vs 0.3 percent).

 South Africa September Inflation Rate Eases to 4.1%

Statistics South Africa | Luisa Carvalho |
10/23/2019 2:06:41 PM