South Africa Inflation

South Africa

South Africa: Inflation reaches a seven-month high in July

August 19, 2015

In July, consumer prices rose 1.04% over the previous month, which followed June’s 0.44% increase. According to Statistics South Africa, July’s result mainly reflects higher prices for transport as well as for housing and utilities.

Inflation inched up from 4.7% in June to 5.0% in July, thus hitting the highest level in seven months. Despite the increase, inflation remains within the Central Bank’s target range of 3.0%–6.0%. Annual average inflation inched down from June’s 5.1% to 5.0% in July, the lowest reading since December 2011.

Core consumer prices, which exclude prices for food, fuel and electricity, rose 1.0% over the previous month, which was above the 0.3% increase observed in the previous month. Annual core inflation of 5.7% in July was higher than the previous month’s 5.5%.

The Central Bank expects inflation to average 5.3% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 4.9% in 2015, which is up 0.1 percentage points from last month’s forecast. In 2016, the panel sees average inflation of 5.9%.


Author:, Senior Economist

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South Africa Inflation Chart


South Africa Inflation July 2015 0

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


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