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%.
Author: Dirina Mançellari, Senior Economist