South Africa: Inflation falls to lowest level in nearly four years
February 18, 2015
In January, consumer prices fell 0.18% over the previous month, which met December’s drop. According to Statistics South Africa, January’s result reflects lower prices for food and petrol.
Annual inflation fell from 5.3% in December to 4.4% in January, thus recording the lowest level since April 2011. Inflation remains within the Central Bank’s target range of 3.0%-6.0%. Annual average inflation inched down from December’s 6.1% to 6.0% in January.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.4% over the previous month, which was above the 0.2% increase observed in December. Annual core inflation inched up from 5.7% in December to 5.8% in January.
Author: Dirina Mançellari, Senior Economist