South Africa Inflation Rate Edges Up to 4.5% in May

The annual inflation rate in South Africa rose to 4.5% in May 2019 from 4.4% in the prior month, above market expectations of 4.4%, but still in the mid-point of the Reserve Bank's target range of 3-6%. Main upward pressure came from prices of housing & utilities and food while those of transport slowed.
Statistics South Africa | Luisa Carvalho | 6/19/2019 9:30:45 AM
Year-on-year, prices rose faster for housing & utilities (4.5 percent vs 4.4 percent in April), mostly water & other services (10.9 percent vs 10.8 percent) and food & non-alcoholic beverages (3.2 percent vs 2.9 percent), namely processed (4.8 percent vs 4.2 percent) and unprocessed (1.3 percent vs 0.9 percent). Additional upward pressure came from household contents and services (3.3 percent vs 3.2 percent); recreation & culture (0.4 percent vs 0.3 percent); restaurants & hotels (3.2 percent vs 2.8 percent) and health (5.2 percent vs 4.7 percent).

Meantime, inflation was steady for miscellaneous goods & services (at 5.4 percent); clothing & footwear (at 1.9 percent) and education (at 6.7 percent). 

On the other hand, cost slowed for transport (7.1 percent vs 7.4 percent), of which fuels (11.6 percent vs 12 percent) and alcoholic beverages & tobacco (5.6 percent vs 5.7 percent); while it continued to fall for communication (-0.5 percent vs -0.4 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, stood at an over 1-year low of 4.1 percent in May, unchanged from the previous month and slightly below market consensus of 4.2 percent.

On a monthly basis, consumer prices went up 0.3 percent, following a 0.6 percent gain in the previous month and matching market expectations.

South Africa Inflation Rate Edges Up to 4.5% in May