South Africa Inflation Rate Rises to 3-Month High in October

The annual inflation rate in South Africa increased to 5.1 percent in October of 2018 from 4.9 percent in the previous month and in line with market expectations. It was the highest inflation rate since July, mainly driven by cost of transport.

Year-on-year, prices rose faster for transport (10.5 percent compared to 8.7 percent in September), mostly private transport operation (18.8 percent compared to 15.2 percent) and fuel (22.8 percent compared to 18.5 percent); recreation & culture (0.7 percent compared to 0.5 percent); clothing & footwear (2.0 percent compared to 1.9 percent) and communication (1.2 percent compared to 1.1 percent).

On the other hand, cost slowed for food & non-alcoholic beverages (3.4 percent compared to 3.9 percent); housing & utilities (5.2 percent compared to 5.3 percent); miscellaneous goods and services (5.4 percent compared to 5.5 percent); restaurant and hotels (4.2 percent compared to 4.6 percent) and health (5.0 percent compared to 5.4 percent). Also, inflation was steady for alcoholic beverages & tobacco (4.2 percent, the same as in September); household contents and services (3.0 percent) and education (6.7 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, remained unchanged at 4.2 percent in October, the same as in September, and slightly below market consensus of 4.3 percent. Compared to July, core consumer prices went up 0.1 percent, easing from a 0.5 percent gain in the prior month.

On a monthly basis, consumer prices advanced 0.5 percent, the same as in the previous month and matching market expectations. 

South Africa Inflation Rate Rises to 3-Month High in October

Statistics South Africa | Stefanie Moya |
11/21/2018 8:21:37 AM