South Africa Inflation Rate at 17-Month High

Consumer prices in South Africa went up 6.2 percent year-on-year in January of 2016, accelerating for the fourth straight month and reaching the highest since August of 2014. Figures came above market expectations, due to higher cost for electricity, food, transport and alcoholic beverages.

Year-on-year, the biggest upward pressure came from prices of housing and utilities (up 6.6 percent, the same as in the previous month), mainly electricity and other fuels (up 11.2 percent), water and other services (up 9.8 percent) and actual rentals (up 5.2 percent). Additional upward pressure came from cost of food and non-alcoholic beverages (up 6.9 percent from 5.9 percent in the previous month), driven by unprocessed (up 7.6 percent) and processed food (up 6.3 percent), meat (up 4.3 percent) and bread and cereals (up 8.4 percent). Transport prices went up 5.5 percent after rising 1.9 percent in the previous month, mainly due to petrol (up 10 percent), purchase of vehicles (up 4.1 percent) and public transport (up 2.7 percent). Prices of alcoholic beverages and tobacco increased 8.3 percent, following a 6.6 percent growth in December. 

Annual core inflation rate, which excludes prices of food, non-alcoholic beverages, petrol and energy was 5.6 percent, up from 5.2 percent in December and the highest in eight months. 

On a monthly basis, consumer prices increased 0.8 percent, the biggest gain in five months. Cost of food and non-alcoholic beverages went up 1.9 percent, namely fruit (5.2 percent) and vegetables (4.4 percent). Cost of alcoholic beverages and tobacco went up 2 percent, transport cost rose 0.5 percent and cost of recreation and culture went up 3.7 percent.

South Africa Inflation Rate at 17-Month High

Statistics South Africa | Joana Taborda |
2/17/2016 8:33:26 AM