South Africa Inflation Rate Rises to 4-Month High in April

The annual inflation rate in South Africa rose to 4.5 percent in April of 2018 from 3.8 percent in the previous month and below market expectations of 4.7 percent. It was the highest inflation rate since December last year, mainly due to prices of food and non-alcoholic beverages and housing and utilities.

Year-on year, prices increased faster for food and non-alcoholic beverages (3.9 percent compared to 3.5 percent in March), mostly due to processed food (3.4 percent compared to 2.7 percent) and housing and utilities (4.8 percent compared to 4.6 percent). In addition, cost advanced futher for transport (5.0 percent compared to 2.8 percent), namely fuel (9.0 percent compared to 2.9 percent); alcoholic beverages and tobacco (6.0 percent compared to 5.2 percent); recreation and culture (1.4 percent compared to 0.3 percent) and household equipment (2.6 percent compared to 2.0 percent). Also, prices continued to rise for clothing and footwear (1.6 percent compared to 1.5 percent) and restaurants and hotels (4.3 percent compared to 2.8 percent) and cost of communication rebounded (1.0 percent compared to -1.0 percent). On the other hand, cost eased for miscellaneous goods and services (6.1 percent compared to 6.2 percent) and health (4.8 percent compared to 5.1 percent) while inflation was steady for education (6.7 percent, the same as in March). 

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, went up 4.5 percent in April from 4.1 percent in March, matching market consensus. Compared to February, core consumer prices advanced 0.6 percent, slowing from a 0.7 percent in the prior month.

On a monthly basis, consumer prices edged up 0.8 percent, compared to a 0.4 percent gain in March, and in line with market expectations.

South Africa Inflation Rate Rises to 4-Month High in April

Statistics South Africa | Stefanie Moya |
5/23/2018 9:27:08 AM