South Africa Inflation

South Africa

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%.

The Central Bank expects inflation to average 5.3% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 5.6% in 2015, which is unchanged from last month’s forecast. In 2016, the panel sees average inflation of 5.8%.


Author:, Senior Economist

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South Africa Inflation Chart


South Africa Inflation May 2015

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


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