South Africa Inflation Rate at 1-1/2-Year High of 5.2%

The annual inflation rate in South Africa rose to 5.2 percent in November of 2018 from 5.1 percent in the previous month while markets had expected it to remain steady at 5.1 percent. It is the highest inflation rate since May 2017, as prices continued to climb mainly for transport.

Year-on-year, prices rose faster mainly for transport (10.7 percent from 10.5 percent in October), namely private transport operation (19.2 percent from 18.8 percent) amid rising cost of fuels (23.1 percent from 22.8 percent); and miscellaneous goods & services (5.5 percent from 5.4 percent), of which personal care (1.8 percent  from 0.8 percent). Additional upward pressure came from prices of: health (5.1 percent from 5.0 percent); alcoholic beverages & tobacco (4.8 percent from 4.2 percent); household contents and services (3.4 percent from 3.0 percent); recreation & culture (0.9 percent from 0.7 percent) and communication (1.4 percent from 1.2 percent).

On the other hand, inflation was steady for food & non-alcoholic beverages (3.4 percent); housing & utilities (5.2 percent) and education (6.7 percent). Also, cost slowed for restaurants & hotels (4.1 percent from 4.2 percent) and clothing & footwear (1.8 percent from 2.0 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, rose to 4.4 percent in November 2018 from 4.2 percent in October and slightly above market consensus of 4.3 percent. It is the highest rate since May. Compared to the previous month, core consumer prices increased 0.2 percent, compared to a 0.1 percent gain in October and market expectations of a 0.1 percent rise.

On a monthly basis, consumer prices went up 0.2 percent, following a 0.5 percent rise in October and above market expectations of a 0.1 percent gain. Prices slowed mostly for transport (0.6 percent from 2.6 percent), due to fuels (1.1 percent from 6.1 percent) while they increased slightly for food & non-alcoholic beverages (0.4 percent from 0.3 percent), pushed up by cost of fruit (4.3 percent from 2.0 percent).

South Africa Inflation Rate at 1-1/2-Year High of 5.2%

Statistics South Africa | Luisa Carvalho |
12/12/2018 8:55:59 AM