South Africa Inflation

South Africa

South Africa: Inflation falls to lowest level in four years

March 18, 2015

In February, consumer prices rose 0.63% over the previous month, which contrasted January’s 0.18% decrease. According to Statistics South Africa, February’s result reflects lower prices for food and non-alcoholic beverages.

Annual inflation fell from 4.4% in January to 3.9% in February, thus recording the lowest level since February 2011. Despite the drop, inflation remains within the Central Bank’s target range of 3.0%-6.0%. Annual average inflation fell from January’s 6.0% to 5.8% in February, thus reaching the lowest level since December 2013.

Core consumer prices, which exclude prices for food, fuel and electricity, rose 1.3% over the previous month, which was above the 0.4% increase observed in January. Annual core inflation inched up from 5.8% in January to 5.9% in February.

The Central Bank expects inflation to average 5.3% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 5.6% in 2015, which is unchanged from last month’s forecast. In 2016, the panel sees average inflation of 5.8%.


Author:, Senior Economist

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South Africa Inflation Chart


South Africa Inflation February 2015

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


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