South Africa Inflation at 13-Month Low in December


South African annual inflation rate eased to 5.3 percent in December from 5.8 percent in the previous month, mainly due to lower cost of food and transport. The figure came below market expectations and was the lowest since November 2013.

On a monthly basis, consumer prices decreased 0.2 percent after remaining unchanged in November.

The food and non-alcoholic beverages index declined by  0.4 percent between November 2014 and December 2014. The annual rate increased to 7.2 percent in December from 7.6 percent in November. Prices of all food categories decreased except for meat. The biggest decline were recorded for  vegetables (-2.9 percent), followed by other food (-1.2 percent), fish (-0.9 percent); sugar, sweet and desserts (-0.6 percent); processed food (-0.5 percent); unprocessed food (-0.3 percent); bread and cereals (-0.4 percent); oils and fats (-0.3 percent) and milk, eggs and cheese (-0.2 percent). Meanwhile, prices of meat increased by 0.6 percent.

The housing and utilities index increased by 0.5 percent netween November 2014 and December 2014, mainly due to a 0.9 percent increase in actual rentals for housing and a 0.7 percent increase in owners' equivalent rent. The annual rate decreased by 5.7 percent in December 2014 from 5.8 percent in November 2014.

The transport index decreased by 1.6 percent between November and December, mainly due to a 69c/litre decrease in the price of petrol. The annual rate decreased to 1.7 percent in December 2014 from 4.2 percent in the previous month.

The miscellaneous goods and services index ncreased by 0.1 percent between November 2014 and December 2014. The annual rate increased to 7.1 percent in December 2014 drom 6.9 percent in the precrding month.
KwaZulu-Natal (5.3 percent), North West (5.3 percent), Northern Cape (5.2 percent), Gauteng (5.2 percent), Free State (5.1 percent) and Mpumalanga (5.1 percent) recorded lower than or equal to headline inflation. The provinces with an annual inflation rate higher than headline inflation were Western Cape (5.9 percent), Limpopo (5.9 percent) and Eastern Cape (5.4 percent).

Core inflation rate, which excludes food, non-alcoholic beverages, gasoline and electricity costs rose to 5.7 percent in December from 5.8 percent in the previous month.

For full year of 2014, average annual inflation was recorded at 6.1 percent, as compared to a 5.7 percent in the previous year.

South Africa Inflation at 13-Month Low in December


Statictics South Africa l Rida Husna l rida@tradingeconomics.com
1/21/2015 9:20:44 AM