South Africa: Inflation drops to lowest level over 15 years in May
July 15, 2020
Consumer prices fell 0.61% in May over the previous month, coming in below the 0.52% drop recorded in April. May's result marked the sharpest fall in prices since December 2008. Looking at the details of the release, transportation prices fell at a quicker pace in May compared to the previous month, while prices for alcoholic beverages and tobacco dropped. Moreover, price pressures for food and non-alcoholic beverages eased.
Inflation came in at 2.1% in May, below April’s 3.0% print. May's reading represented the weakest inflation rate since September 2004. Annual average inflation fell to 3.9% in May (April: 4.1%). Lastly, core inflation edged down to 3.1% from the previous month's 3.2%.