South Africa: Inflation hits 10-month high in December
January 19, 2017
In December, consumer prices in South Africa increased 0.40% from the previous month, which followed November’s 0.32% increase. According to Statistics South Africa, December’s result mainly reflected higher prices for food and non-alcoholic beverages.
Inflation increased from 6.6% in November to 6.8% in December, the highest reading in 10 months. This brings inflation further above the upper threshold of the Central Bank’s target range of 3.0%–6.0%. Annual average inflation edged up from 6.2% in November to 6.3% in December.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.4% over the previous month, which was above the 0.1% increase observed in the previous month. Finally, annual core inflation inched up from 5.8% in November to 6.0% in December, the highest reading since January 2010.
Author: Dirina Mançellari, Senior Economist