South Africa: Inflation eases again in May
June 22, 2016
In May, consumer prices increased 0.17% over the previous month, which came in below April’s 0.83% increase. According to Statistics South Africa, May’s result mainly reflected higher prices for transport.
Inflation inched down from 6.2% in April to 6.1% in May, thus hitting the lowest reading in five months. As a result, inflation remains slightly above the Central Bank’s target range of 3.0%–6.0%. Annual average inflation edged up from 5.3% in April to 5.5% in May, reaching the highest reading since April 2015.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.1% over the previous month, which was slightly below the 0.2% increase observed in April. Finally, annual core inflation inched down from April’s 5.8% to 5.7% in May.
Author: Dirina Mançellari, Senior Economist