South Africa: Inflation inches up in May
June 21, 2017
In May, consumer prices increased from a 0.1% increase in April to 0.3%. May’s monthly increase in prices is the result of higher prices in almost all components of the index such as transport, food and non-alcoholic beverages, and health.
Inflation inched up from April’s over-one-year low of 5.3% to 5.4% in May. The result was slightly above the 5.3% the markets expected. Inflation in May came within the Central Bank target range of 3.0%-6.0% for the first time in eight months. Annual average inflation in May came in at 6.2% (April: 6.2%).
Core consumer prices—which exclude food, non-alcoholic beverages, energy and gasoline—rose 0.1% in May from the previous month, down from 0.1% in April. Core inflation in May remained unchanged at the 4.8% reading observed in April.