South Africa Inflation Rate Rises to 6-Month High in June

The annual inflation rate in South Africa increased to 4.6 percent in June of 2018 from 4.4 percent in the previous month and below market expectations of 4.8 percent. It was the highest inflation rate since December last year, mainly due to higher prices of transport.

Year-on year, cost advanced faster for transport (7.3 percent compared to 5.0 percent in May), namely fuel (16.3 percent compared to 9.4 percent) and household equipment (2.7 percent compared to 2.4 percent). In contrast, cost eased for housing and utilities (4.1 percent compared to 4.8 percent); recreation and culture (0.6 percent compared to 1.3 percent); alcoholic beverages and tobacco (6.0 percent compared to 6.2 percent) and clothing and footwear (1.8 percent compared to 1.7 percent). Also, prices slowed for restaurants and hotels (4.5 percent compared to 5.0 percent) and health (4.7 percent compared to 4.8 percent). Additionally, inflation was steady for food and non-alcoholic beverages (3.4 percent, the same as in May); miscellaneous goods and services (6.2 percent); communication (1.1 percent) and education (6.7 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, slowed to 4.2 percent in June from 4.4 percent in May, down from market consensus of 4.4 percent. Compared to May, core consumer prices went up 0.2 percent, after increasing 0.6 percent in the prior month.

On a monthly basis, consumer prices rose 0.4 percent, following a 0.2 percent in May and slightly lower than forecasts of 0.5 percent.

South Africa Inflation Rate Rises to 6-Month High in June

Statistics South Africa | Stefanie Moya |
7/18/2018 8:53:37 AM