South Africa Inflation April 2018

South Africa

South Africa: Inflation jumps on VAT hike in April

May 23, 2018

Consumer prices rose 0.8% in April from a month earlier, accelerating from March’s 0.4% uptick. April’s print was driven by higher transport prices, although gains were nearly broad-based across categories as VAT hikes came into effect. Meanwhile, core consumer prices—which exclude food and energy prices—rose 0.6% from a month earlier, easing from March’s 0.7% rise.

Inflation jumped to 4.5% from 3.8% a month earlier. Analysts overestimated the effect of the one-point tax hike; inflation came in below their 4.7% forecast, while also landing at the midpoint of the Central Bank’s 3.0%–6.0% target. Core inflation also sped up, rising to 4.5% from 4.1%. On the other hand, annual average inflation eased to 4.6% from 4.7%.

FocusEconomics Consensus Forecast panelists see inflation averaging 5.1% in 2018, which is unchanged from last month’s forecast. For 2019, the panel sees inflation averaging 5.3%.


Author:, Economist

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South Africa Inflation Chart


South Africa Inflation April 2018

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


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