South Africa January Inflation Rate Lowest Since 2015

Inflation rate in South Africa fell to 4.4 percent in January of 2018 from 4.7 percent in December, slightly below market expectations of 4.5 percent. It was the lowest reading since March 2015, as prices increased less mostly for transport and food. Meantime, inflation was steady for housing and utilities. Also core inflation declined to 4.1 percent, the lowest in over 6 years.

Year-on-year, cost advanced less for transport (4.4 percent vs 6.4 percent in December), mainly fuel (9.1 percent vs 14.2 percent) and food (4.5 percent vs 4.8 percent), amid lower prices of bread and cereals (-5.1 percent vs -5 percent); oils and fats (-3.4 percent vs -2.6 percent); fruit (-3.6 percent vs -4.2 percent) and milk and dairy products (4.2 percent vs 4.8 percent). Also, cost rose at the same pace for housing and utilities (4.4 percent) while eased for miscellaneous goods & services (7 percent vs 7.1 percent); furnishings (1.5 percent vs 1.7 percent) and clothing & footwear (1.7 percent vs 1.8 percent).

Meanwhile, prices continued to climb for: alcoholic beverages & tobacco (5.3 percent vs 4.9 percent); recreation & culture (0.7 percent vs 0.4 percent); restaurants & hotels (3.6 percent vs 3 percent) and health (6 percent vs 5.7 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, decreased to 4.1 percent in January of 2018 from 4.2 percent in December. This compares with market expectations of 4.2 percent and remains the lowest rate since December 2011. Compared to December, core consumer prices went up 0.2 percent from a 0.3 percent gain, below market consensus of a 0.3 percent gain.

On a monthly basis, consumer prices rose 0.3 percent, following a 0.5 percent increase in December, matching market expectations.

South Africa January Inflation Rate Lowest Since 2015

Statistics South Africa | Luisa Carvalho |
2/21/2018 11:21:56 AM