South Africa Inflation August 2016

South Africa

South Africa: Inflation eases further in August

September 21, 2016

In August, consumer prices dropped 0.08% over the previous month, which contrasted July’s 0.82% increase and marked the first month-on-month decrease in a year. According to Statistics South Africa, August’s result mainly reflected lower prices for fresh vegetables and healthcare.

Inflation inched down from 6.0% in July to 5.9% in August, thus hitting the lowest reading in eight months. This brings inflation just below the upper threshold of the Central Bank’s target range of 3.0%–6.0%. Annual average inflation inched up from 5.7% in July to 5.8% in August.

Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.2% over the previous month, which was below the 0.8% increase observed in the previous month. Finally, annual core inflation inched up from July’s 5.7% to 5.8% in August.

FocusEconomics Consensus Forecast panelists expect inflation to average 5.9% in 2016, which is unchanged from last month’s forecast. In 2017, the panel sees average inflation of 5.7%.

Author:, Senior Economist

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South Africa Inflation Chart

South Africa Inflation August 2016

Note: Annual and monthly variation of consumer prices index in %.
Source: Statistics South Africa and FocusEconomics calculations.

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