South Africa Inflation Rate Drops to 4.4% in April

The annual inflation rate in South Africa edged down to 4.4% in April 2019, below the mid-point of the central bank's target range of 3-6%, from 4.5% in the previous month. The reading came slightly below market expectations of 4.5%, as slowing prices of housing & utilities and food offset an additional rise in fuels cost.
Statistics South Africa | Luisa Carvalho | 5/22/2019 1:39:51 PM
Year-on-year, prices slowed primarily for housing & utilities (4.4 percent vs 4.5 percent in March), of which water & other services (10.8 percent vs 11.0 percent) and electricity & other fuels (6.8 percent vs 7.6 percent) and food & non-alcoholic beverages (2.9 percent vs 3.1 percent). Softer increases were also seen for alcoholic beverages & tobacco (5.7 percent vs 6.4 percent); household contents and services (3.2 percent vs 3.5 percent); recreation & culture (0.3 percent vs 1.2 percent); restaurants & hotels (2.8 percent vs 4.4 percent) and health (4.7 percent vs 5.3 percent). Also, cost fell for communication (-0.4 percent vs 1.5 percent).

At the same time, inflation remained steady for miscellaneous goods & services (5.4 percent); clothing & footwear (1.9 percent) and education (6.7 percent).

In contrast, prices accelerated for transport (7.4 percent vs 6.4 percent), pushed up by fuels cost (12 percent vs 8.8 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, fell to 4.1 percent in April from 4.4 percent in the previous month, slightly below market expectations of 4.2 percent. It is the lowest core inflation since March 2018. Compared to the previous month, core consumer prices went up 0.3 percent, down from a 0.7 percent increase in March and in line with market forecasts.

On a monthly basis, consumer prices increased 0.6 percent, following a 0.8 percent rise in the prior month and below market expectations of a 0.8 percent gain.

South Africa Inflation Rate Drops to 4.4% in April