South Africa Inflation Rate Unexpectedly Slows to 4.9%

The annual inflation rate in South Africa dropped to 4.9 percent in August 2018 from a 10-month high of 5.1 percent in July and against market expectations of 5.2 percent. The slowdown in inflation mainly reflected softening prices of transport.

Year-on-year, prices advanced at a slower pace for: transport (9.5 percent vs 10 percent in July), namely fuel (23.6 percent vs 25.3 percent); miscellaneous goods and services (5.6 percent vs 5.7 percent); alcoholic beverages & tobacco (4.6 percent vs 6.0 percent) and recreation & culture (0.3 percent vs 0.4 percent). On the other hand, inflation quickened for housing & utilities (5.3 percent vs 5.2 percent), of which water (11.2 percent vs 11.0 percent) and electricity (7.8 percent vs 7.7 percent); food & non-alcoholic beverages (3.5 percent vs 3.4 percent), mostly vegetables (8.9 percent vs 8.8 percent); household contents and services (2.9 percent vs 2.8 percent) and clothing & footwear (1.9 percent vs 1.8 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, petrol and energy, eased to 4.2 percent in August from 4.3 percent in July, slighlty below market consensus of 4.3 percent. Compared to July, core consumer prices were flat, following a 0.6 percent rise in the previous month.

On a monthly basis, consumer prices decreased 0.1 percent, after increasing 0.8 percent in July and compared with market expectations of a 0.15 percent gain.

South Africa Inflation Rate Unexpectedly Slows to 4.9%

Statistics South Africa | Luisa Carvalho |
9/19/2018 9:36:06 AM