South Africa Inflation January 2018

South Africa

South Africa: Inflation moderates in January

February 21, 2018

Consumer prices rose 0.3% in January over the previous month, coming in below the 0.5% month-on-month increase in December. January’s reading reflects a 1.3% increase in the prices of food and non-alcoholic beverages which more than offset lower prices for transport.

Inflation moderated from December’s 4.7% to 4.4% in January, coming in below market analysts’ expectations of 4.5%. Inflation lies within the Central Bank’s target range of 3.0%–6.0%, where it has been since April 2017. Meanwhile, annual average inflation declined from 5.3% in December to 5.1% in January.

Core consumer prices—which exclude food, non-alcoholic beverages, energy and gasoline—came in at 0.2% in January, marginally below December’s 0.3% increase. Core inflation in January inched down from 4.2% in December to 4.1%, the lowest print since December 2011.

South Africa Inflation Forecast

FocusEconomics Consensus Forecast panelists expect inflation to average 5.1% in 2018, which is unchanged from last month’s forecast. In 2019, the panel sees average inflation edging up to 5.3%.

Author: Jean-Philippe Pourcelot, Economist

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South Africa Inflation Chart

South Africa Inflation January 2018

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

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