South Africa Inflation August 2019

South Africa

South Africa: Inflation picks up in August amid weaker rand

September 18, 2019

Consumer prices rose 0.3% over the previous month in August, a slightly smaller upturn compared to the 0.4% month-on-month increase in July. Prices for housing and utilities climbed at a markedly slower pace, while prices for food and non-alcoholic beverages, and transport returned to growth.

Conversely, inflation climbed to 4.3% in August from 4.0% in July, moving closer to the midpoint of the South African Reserve Bank’s (SARB) target band of 3.0%–6.0%. A notable depreciation in the rand over downbeat domestic growth prospects and wider emerging-market uncertainty stoked price pressures. Meanwhile, core inflation inched up to 4.3% from 4.2% in July. Lastly, annual average inflation remained at 4.5% in August.

The SARB sees inflation averaging 4.4% in 2019 and 5.1% in 2020. FocusEconomics Consensus Forecast panelists see inflation averaging 4.5% in 2019, which is down 0.1 percentage points from last month’s forecast. Our panel sees inflation averaging 5.0% in 2020, which is unchanged from last month’s estimate.


Author:, Economist

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South Africa Inflation Chart


South Africa Inflation August 2019

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


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