South Africa

South Africa Inflation April 2021

South Africa: Inflation hits 14-month high in April

Consumer prices rose 0.67% in April over the previous month, down slightly from the 0.68% rise seen in March and marking the softest increase in prices since January. Looking at the details of the release, the reading largely reflected higher price pressures for food and non-alcoholic beverages, housing and utilities, as well as for transport.

Inflation came in at 4.4% in April, which was up from March’s 3.2%. April’s figure represented the highest inflation rate since February 2020. Annual average inflation rose to 3.1% in April (March: 2.9%). Core inflation rose to 3.0% in April from the previous month’s 2.5% increase.

Commenting on the outlook for inflation, Andrew Matheny, economist at Goldman Sachs, reflected:

“We expect headline inflation to increase further to around 5%yoy in May on base effects in fuel prices and to peak at that level, before declining to 4% in 2021H2. Meanwhile, we see core inflation peaking close to current levels before declining to around 2.7% in 2021H2. We maintain our forecast for headline inflation of 4% in 2021, and we expect it to decline to 3.6% in 2022.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest