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.
Author: Dirina Mançellari, Senior Economist