South Africa Inflation Rate Edges Up to 5.1% in July

The annual inflation rate in South Africa rose to 5.1 percent in July of 2018 from 4.6 percent in June and above market expectations of 5.0 percent. It was the highest inflation rate since September last year, boosted by cost of housing and utilities and transport.

Year-on year, prices increased further for housing and utilities (5.2 percent compared to 4.1 percent in June); transport (10.0 percent compared to 7.3 percent), namely fuel (25.3 percent compared to 16.3 percent) and household equipment (2.8 percent compared to 2.7 percent). Meanwhile, cost slowed for miscellaneous goods and services (5.7 percent compared to 6.2 percent); recreation and culture (0.4 percent compared to 0.6 percent); restaurants and hotels (4.2 percent compared to 4.5 percent) and health (4.4 percent compared to 4.7 percent). Also, inflation was steady for food and non-alcoholic beverages (3.4 percent, the same as in June); alcoholic beverages and tobacco (at 6.0 percent); clothing and footwear (at 1.8 percent); communication (at 1.1 percent) and education (at 6.7 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, advanced to 4.3 percent in July from 4.2 percent in June, in line with market consensus. Compared to June, core consumer prices picked up to 0.6 percent, following a 0.2 percent gain in the previous month.

On a monthly basis, consumer prices went up 0.8 percent, after rising 0.4 percent in June and slightly higher than forecasts of 0.7 percent.

South Africa Inflation Rate Edges Up to 5.1% in July

Statistics South Africa | Stefanie Moya |
8/22/2018 8:24:08 AM