South Africa: Inflation picks up in August amid weaker rand
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.