South Africa: Inflation increases further in January
January 25, 2016
In January, consumer prices increased 0.77% over the previous month, which came in above December’s 0.26% increase. According to Statistics South Africa, January’s result mainly reflected higher prices for food and housing.
Inflation increased from 5.2% in December to 6.2% in January, thus hitting the highest level in over a year. As a result, inflation is now above the Central Bank’s target range of 3.0%–6.0%. Annual average inflation inched up from 4.6% in December to 4.7% in January, thus reaching the highest reading in four months.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.6% over the previous month, which was above the 0.3% increase observed in December. Finally, annual core inflation inched up from 5.6% in December to 5.8% in January.
Author: Dirina Mançellari, Senior Economist