South Africa Inflation Rate at 7-Month High

South Africa annual inflation rate accelerated for the fifth straight month to 5 percent in July of 2015 from 4.7 percent in June, in line with market expectations. It is the highest figure since December last year pushed by higher utilities cost. Yet, core inflation slowed to its lowest rate in seventeen months.

The highest contribution to the rise in the CPI came from prices of housing and utilities which rose 6.4 percent year-on-year, following a 5.4 percent increase in June. Cost of electricity and other fuels posted the highest increase (11.3 percent), followed by water and other services (10 percent) and rentals for housing (4.8 percent). 

Prices of miscellaneous goods and services went up 7 percent with insurance posting the highest increase (8.2 percent). Additional upward pressure came from cost of food and non-alcoholic beverages (up 4.4 percent), alcoholic beverages and tobacco (up 8.9 percent) and education (up 9.3 percent). 

Transport prices went up 0.8 percent, slightly up from a 0.7 percent increase in June and mainly driven by a 4.2 percent rise in vehicles cost. 

Annual core inflation rate, which excludes prices of food, non-alcoholic beverages, petrol and energy slowed to 5.4 percent from 5.5 percent in May.

On a monthly basis, consumer prices rose 1 percent, after a 0.4 percent increase in June and in line with market expectations. Cost of food and non-alcoholic beverages increased 0.1 percent, due to prices of hot beverages (0.9 percent), other food (0.6 percent), bread and cereals (0.5 percent), vegetables (0.4 percent), fish (0.3 percent), oils and fats (0.2 percent) and cold beverages (0.2 percent). In contrast, prices decreased for fruit (-2.5 percent), meat (-0.4 percent) and sugar, sweets and desserts (-0.3 percent). The housing and utilities index increased by 3.1 percent, mainly due to a 9.8 percent increase in water and other services and an 11.2 percent increase in electricity and other fuels. In addition, transport prices rose 1 percent, mainly driven by a 44c/litre increase in the price of petrol. 

South Africa Inflation Rate at 7-Month High

Statistics South Africa | Joana Taborda |
8/19/2015 9:33:51 AM