South Africa Inflation Rate Below Expectations

Consumer prices in South Africa increased 4.6 percent year-on-year in September of 2015, the same as in August and lower than market forecasts as a deeper fall in petrol prices offset higher housing rentals.

Year-on-year, cost of goods increased 3.6 percent and prices of services went up 5.6 percent, the same as in August. The highest upward contribution came from prices of housing and utilities (up 6.4 percent from 6.3 percent in August). Cost of housing rentals and owners' equivalent rent went up 4.9 percent each (4.8 percent and 4.6 percent respectively in August). Additional upward pressure came from miscellaneous goods and services (7 percent, the same as in August) and food and non-alcoholic beverages (up 4.4 percent from 4.3 percent in August). In contrast, transport prices fell at a faster 0.8 percent (-0.7 percent in August), mainly due to an 8.2 percent drop in petrol cost (-7.6 percent in August). 

On a monthly basis, consumer prices were flat in September. Housing and utilities posted the highest upward contribution (up 0.9 percent after showing no growth in August) mainly driven by actual rentals for housing (1.3 percent) and owners’ equivalent rent (1.4 percent). Transport prices fell 1.6 percent (-1.1 percent in August), mainly because of petrol (-5.3 percent or -69c/litre).

Annual core inflation rate, which excludes prices of food, non-alcoholic beverages, petrol and energy was 5.3 percent, the same as in the previous month. The monthly index accelerated to 0.4 percent from 0.2 percent in August. 

South Africa Inflation Rate Below Expectations

Statistics South Africa | Joana Taborda |
10/21/2015 9:28:48 AM