South Africa Inflation Rate Falls to Over 8-1/2-Year Low

The annual inflation rate in South Africa fell to 3.7 percent in October 2019 from 4.1 percent in the previous month and below market expectations of 3.9 percent. It was the lowest inflation rate since February 2011, amid a slowdown in cost of transport and food & non-alcoholic beverages.
Statistics South Africa | Stefanie Moya | stefanie.moya@tradingeconomics.com 11/20/2019 8:30:09 AM
Year-on-year, prices eased for food & non-alcoholic beverages (3.6 percent from 3.9 percent in September); transport (0.3 percent from 2.4 percent), mainly due to fuels (-4.9 percent from 0.2 percent) and purchase of vehicles (3.4 percent from 3.7 percent); recreation & culture (1.1 percent from 1.4 percent); alcoholic beverages & tobacco (5.7 percent from 6.2 percent); household contents and services (3 percent from 3.2 percent); and restaurants & hotels (3.1 percent from 3.3 percent).

Meanwhile, inflation was steady for housing & utilities (at 4.8 percent); miscellaneous goods & services (at 5.7 percent); clothing & footwear (at 2.2 percent); and education (at 6.7 percent). In addition, cost of health rose further (4.8 percent from 4.6 percent).

Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, was at 4 percent in October, unchanged from the previous month and matching market forecasts. It remained the lowest rate since December 2011.

On a monthly basis, consumer prices were unchanged, after increasing 0.3 percent in September and below consensus of a 0.2 percent gain. Cost food & non-alcoholic beverages went down (-0.1 percent from 0.3 percent) while transport prices advanced at a faster pace (0.3 percent from 0.2 percent).

South Africa Inflation Rate Falls to Over 8-1/2-Year Low