South Africa Inflation Rate Eases to 4.4% YoY in May

The annual inflation rate in South Africa fell to 4.4 percent in May of 2018 from 4.5 percent in the previous month and below market consensus of 4.6 percent. The slowdown in inflation rate was mainly due to lower prices of food and non-alcoholic drinks.

Year-on year, prices rose at a softer pace for food and non-alcoholic beverages (3.4 percent compared to 3.9 percent in April), namely processed food (2.1 percent compared to 3.4 percent); recreation and culture (1.3 percent compared to 1.4 percent) and household equipment (2.4 percent compared to 2.6 percent). On the other hand, cost increased faster for miscellaneous goods and services (6.2 percent compared to 6.1 percent); alcoholic beverages and tobacco (6.2 percent compared to 6.0 percent); clothing and footwear (1.7 percent compared to 1.6 percent); restaurants and hotels (5.0 percent compared to 4.3 percent) and communication (1.1 percent compared to 1.0 percent). Additionally, inflation was steady for housing and utilities (4.8 percent, the same as in April); transport (5.0 percent); education (6.7 percent) and health (4.8 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, eased to 4.4 percent in May from 4.5 percent in April, missing market expectations of 4.5 percent. Compared to April, core consumer prices was unchanged, after rising 0.6 percent in the previous month.

On a monthly basis, consumer prices increased 0.2 percent, slowing from a 0.8 percent gain in the previous month and down from market consensus of 0.3 percent.

South Africa Inflation Rate Eases to 4.4% YoY in May

Statistics South Africa | Stefanie Moya |
6/20/2018 8:32:49 AM