South Africa: Inflation increases in October
November 23, 2016
In October, consumer prices increased 0.49% from the previous month, which followed September’s 0.16% increase, thus marking the highest reading in three months. According to Statistics South Africa, October’s result mainly reflected higher prices for food and non-alcoholic beverages.
Inflation increased from 6.1% in September to 6.4% in October and hit the highest figure in eight 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 5.9% in September to 6.1% in October.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.2% over the previous month, which was above the 0.3% increase observed in the previous month. Finally, annual core inflation inched up from 5.7% in September to 5.8% in October.
Author: Dirina Mançellari, Senior Economist