South Africa Inflation May 2017

South Africa

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.

The Central Bank expects inflation to average 5.7% in 2017 and 5.3% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 5.6% in 2017, which is down 0.2 percentage points from last month’s forecast. In 2018, the panel sees average inflation of 5.5%.

Author: Jean-Philippe Pourcelot, Economist

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South Africa Inflation Chart

South Africa Inflation May 2017

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

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