South Africa Inflation Rate Slows to Nearly 3-Year Low

The consumer price index in South Africa increased 4 percent year-on-year in February of 2018, easing from a 4.4 percent rise in January and below market expectations of a 4.2 percent gain. It was the lowest inflation rate since March of 2015.

Year-on-year, prices slowed mostly for: transport (3.2 percent vs 4.4 percent in January), mainly fuel (5.1 percent vs 9.1 percent) and food (3.9 percent vs 4.5 percent), led by lower cost of meat (11.4 percent vs 13.4 percent); vegetables (1.3 percent vs 1.6 percent) and fruit (-4.3 percent vs -3.6 percent). Also, prices advanced less for: miscellaneous goods and services (6.2 percent vs 7 percent); recreation and culture (0.5 percent vs 0.7 percent); clothing and footwear (1.6 percent vs 1.7 percent) and restaurants and hotels (3 percent vs 3.6 percent).

In contrast, cost rose faster for: housing and utilities (4.5 percent vs 4.4 percent); alcoholic beverages and tobacco (6.1 percent vs 5.3 percent) and household equipment (1.9 percent vs 1.5 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, was unchanged at 4.1 percent in February of 2018. Figures came in line with market expectations and remained the lowest inflation rate since December 2011. Compared to January, core consumer prices inched up 1.1 percent, quickening from a 0.2 percent rise and slightly below market consensus of a 1 percent gain.

On a monthly basis, consumer prices rose 0.8 percent, compared to a 0.3 percent increase in January, but below market expectations of a 0.9 percent gain.

South Africa Inflation Rate Slows to Nearly 3-Year Low

Statistics South Africa | Luisa Carvalho |
3/20/2018 12:08:25 PM