South Africa

South Africa Inflation September 2023

South Africa: Inflation rises in September

Inflation increased to a three-month high of 5.4% in September from August’s 4.8%. Despite the uptick, inflation remained within the 3.0–6.0% target band of the South African Reserve Bank (SARB) and was largely in line with analysts’ expectations.

Looking at the details of the release, the acceleration in headline inflation chiefly reflected transportation prices rising year on year in September after dropping in the previous month. Moreover, price pressures for food and non-alcoholic beverages picked up.

Still, the trend pointed down, with annual average inflation falling to 6.4% in September (August: 6.5%). Meanwhile, core inflation fell to 4.5% in September from the previous month’s 4.8%.

Finally, consumer prices rose 0.63% over the previous month in September, accelerating from the 0.27% increase seen in August.

September’s data suggests the SARB could once again extend the pause in its monetary policy tightening cycle when it convenes next on 23 November; despite headline inflation picking up and moving closer to the upper bound of the target range, underlying inflation moderated to a 13-month low. Our panelists do not see rate cuts until Q1 2024.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest