South Africa: Inflation reaches a five-month high in May
June 17, 2015
In May, consumer prices rose 0.26% over the previous month, which followed April’s 0.88% increase and marked the slowest increase in four months. According to Statistics South Africa, May’s result mainly reflects higher prices for food and non-alcoholic beverages.
Inflation inched up from 4.5% in April to 4.6% in May, thus hitting the highest level in five months. As a result, inflation remains within the Central Bank’s target range of 3.0%-6.0%. Annual average inflation fell from April’s 5.5% to 5.3% in May, the lowest reading since January 2012.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.2% over the previous month, which was below the 0.3% increase observed in the previous month. Annual core inflation in May was stable at the previous month’s 5.7%.
Author: Dirina Mançellari, Senior Economist