- Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, dropped to 4.2 percent in July from 4.3 percent in the prior month and slightly below market estimates of 4.3 percent
The annual inflation rate in South Africa fell to 4.0 percent in July 2019 from 4.5 percent in June, well below market expectations of 4.4 percent and the mid-point of the Reserve Bank’s target range of 3-6%. This is the lowest inflation rate since January, amid a decrease in fuels cost.
Year-on-year, inflation softened primarily for transport (3.0 percent vs 5.5 percent in June), as fuel cost declined (-0.5 percent vs 7.4 percent) on lower international oil prices; and food & non-alcoholic beverages (3.4 percent vs 3.7 percent), of which processed (5.1 percent vs 5.4 percent). Also, prices slowed for alcoholic beverages & tobacco (6 percent vs 6.1 percent); household contents and services (3.0 percent vs 3.1 percent) and restaurants & hotels (2.8 percent vs 3.5 percent).
In contrast, cost rose faster for housing & utilities (5.1 percent vs 4.9 percent), namely electricity and other fuels (10.4 percent vs 6.8 percent) amid an electricity tariff hike implemented on July 1st; miscellaneous goods & services (5.6 percent vs 5.4 percent) and health (5.4 percent vs 5.3 percent).
Annual core inflation rate, which excludes cost of food, non-alcoholic beverages, fuel and energy, dropped to 4.2 percent in July from 4.3 percent in the prior month and slightly below market estimates of 4.3 percent.
On a monthly basis, consumer prices went up 0.4 percent, the same pace as in the previous month and below market expectations of 0.7 percent.
