South Africa Inflation Rate Slows to 7-Month Low of 6%

Consumer prices in South Africa increased 6 percent year-on-year in July of 2016, following a 6.3 percent rise in the previous period and lower than market expectations of 6.1 percent. It is the lowest inflation figure so far this year as cost of electricity and other fuels rose at a slower pace while food inflation reached a seven-year high.

Year-on-year, the biggest upward pressure came from food and non-alcoholic beverages, with prices up 11.3 percent in July, following a 10.8 percent rise in June. It is the highest food inflation since May of 2009. Cost of housing and utilities made the second largest contribution although inflation slowed to 5.8 percent from 6.5 percent, as prices of electricity and other fuels rose 7.4 percent, following an 11.3 percent surge in the previous month. Prices of miscellaneous goods and services increased at a slower 7 percent (7.2 percent in June) and transport inflation also eased to 3.1 percent from 3.3 percent.

On a monthly basis, consumer prices went up at a faster 0.8 percent, following a 0.6 percent rise in June. Prices of food and non-alcoholic beverages rose 0.5 percent, mainly due to a 2.7 percent increase in sugar, sweets and desserts; a 1.1 percent rise in milk, eggs and cheese and a 0.8 percent increase in bread and cereals. Cost of housing and utilities went up 2.4 percent, mainly due to a 10.1 percent increase in water tariffs; a 5.5 percent rise in assessment rates and a 7.5 percent gain in electricity tariffs. In addition, transport prices rose 0.8 percent, boosted by a 11c/l increase in the petrol price.

The core index which excludes prices of food, non-alcoholic beverages, petrol and energy accelerated slightly to 5.7 percent year-on-year from 5.6 percent in June. Month-over-month, prices rose at a faster 0.6 from 0.4 percent in the previous month. 

South Africa Inflation Rate Slows to 7-Month Low of 6%

Statistics South Africa | Joana Taborda |
8/24/2016 9:54:06 AM