South Africa Inflation

South Africa

South Africa: Inflation reaches a six-month high in June

July 22, 2015

In June, consumer prices rose 0.44% over the previous month, which followed May’s 0.26% increase. According to Statistics South Africa, June’s result mainly reflects higher prices for transports as well as for housing and utilities.

Inflation inched up from 4.6% in May to 4.7% in June, thus hitting the highest level in six months. Despite the increase, inflation remains within the Central Bank’s target range of 3.0%–6.0%. Annual average inflation fell from May’s 5.3% to 5.1% in June, the lowest reading since January 2012.

Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.3% over the previous month, which was above the 0.2% increase observed in the previous month. Annual core inflation of 5.5% in June was lower than 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 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 June 2015 2

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

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