South Africa Inflation Rate Highest Since 2009


Consumer prices in South Africa rose 7.0 percent year-on-year in February of 2016, accelerating from 6.2 percent in the previous month and well above market expectations. It was the highest reading since May of 2009, boosted by cost of food, transport, alcoholic beverages and miscellaneous goods and services. On a monthly basis, consumer prices went up 1.3 percent.

Year-on-year, the biggest upward pressure came from prices of food and non-alcoholic beverages (up 8.6 percent from 6.9 percent in the previous month), driven by unprocessed (up 10.4 percent) and processed food (up 7.1 percent), vegetables (up 21.6 percent); sugar, sweets and desserts (up 12.4 percent) and bread and cereals (up 10.6 percent). Transport prices went up 8.7 percent after rising 5.5 percent in the previous month, mainly due to petrol (up 20.7 percent). Prices of alcoholic beverages and tobacco increased 7.6 percent, following a 8.3 percent growth in January. Additional upward pressure came from housing and utilities (up 6.6 percent unchanged from January), mainly electricity and other fuels (up 11.2 percent), water and other services (up 9.8 percent) and actual rentals (up 5.2 percent). Miscellaneous goods and services prices grew 6.8 percent, led by financial services (up 7.8 percent), insurance (up 7.6 percent) and personal care (up 5.1 percent)
   
Annual core inflation rate, which excludes prices of food, non-alcoholic beverages, petrol and energy was 5.7 percent, up from 5.6 percent in January and the highest in nine months. 

On a monthly basis, consumer prices increased 1.4 percent, the biggest gain in eleven months. Cost of food and non-alcoholic beverages went up 2.1 percent, namely vegetables (7.1 percent), bread and
cereals (3,4 percent) and sugar, sweets and desserts (3,4 percent). Cost of transport cost rose 0.5 percent and prices of miscellaneous goods and services went up 5.2 percent. 

South Africa Inflation Rate Highest Since 2009


Statistics South Africa | Yekaterina Guchshina | yekaterina@tradingeconomics.com
3/23/2016 12:34:23 PM