South Africa Inflation July 2017

South Africa

South Africa: Inflation moderates in July to lowest level in over a year and a half

August 23, 2017

In July, consumer prices inched up from June’s 0.2% to 0.3%. July’s increase reflects higher prices for housing and utilities and for food and non-alcoholic beverages, which more than offset a decline in transport prices.

Inflation moderated from 5.1% in June to 4.6% in July, the lowest result since October 2015. Inflation has been within the Central Bank’s target range of 3.0%–6.0% since April 2017 and partly reflects the result of the Reserve Bank’s tightening cycle. Despite the notable drop, annual average inflation moderated from 6.1% to 5.9%.

Core consumer prices—which exclude food, non-alcoholic beverages, energy and gasoline—rose 0.5% in July from the previous month, up from 0.4% in June. Core inflation in July edged down from 4.8% in June to 4.7%.

FocusEconomics Consensus Forecast panelists expect inflation to average 5.4% in 2017, which is down 0.1 percentage points from last month’s forecast. In 2018, the panel sees average inflation of 5.2%.


Author: Jean-Philippe Pourcelot, Economist

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South Africa Inflation Chart


South Africa Inflation July 2017

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


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