South Africa September Inflation Rate Stronger than Expected

South Africa's consumer price inflation rose to 5.1 percent year-on-year in September 2017 from 4.8 percent in the previous month. The reading came in above market expectations of 4.9 percent, mainly boosted by higher prices of housing, transport and miscellaneous goods and services.

Year-on-year, prices rose faster for: Housing and utilities (4.9 percent from 4.5 percent in August), mainly boosted by cost of actual rentals for housing (5.7 percent from 5 percent) and that of owners equivalent rent (5.4 percent from 4.9 percent); transport (5.6 percent from 3.9 percent), due to higher cost of fuel (12.2 percent compared to 5.7 percent) and private transport operation (10.2 percent from 5.2 percent); miscellaneous goods and services (7.6 percent from 7.5 percent); alcoholic beverages and tobacco (4.7 percent from 4.3 percent); household contents and equipment (2.1 percent from 2 percent); and health (7.2 percent from 7 percent). Meanwhile, inflation eased for: Food and non-alcoholic beverages (5.5 percent from 5.7 percent in August); clothing and footwear (2.3 percent from 2.8 percent); recreation and culture (2.2 percent from 2.4 percent); and restaurants and hotels (3.4 percent from 4.2 percent). Prices of communication continued to fall (-1.4 percent from -1.3 percent in August).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy stood at 4.6 percent, unchanged from the previous month's five-year low and above market consensus of 4.5 percent.

On a monthly basis, consumer prices increased 0.5 percent, beating expectations of 0.3 percent. 

South Africa September Inflation Rate Stronger than Expected

Statistics South Africa | Joana Ferreira |
10/18/2017 8:30:44 AM