South Africa Inflation

South Africa

South Africa: Inflation reaches a three-month low in August

September 23, 2015

In August, consumer prices were unchanged over the previous month, which was down from the 1.04% increase seen in July and marked a seven-month low. According to Statistics South Africa, August’s result mainly reflects that higher prices for food offset lower prices for alcoholic beverages.

Inflation dropped from 5.0% in July to 4.6% in August, thus hitting a three-month low. As a result, inflation remains within the Central Bank’s target range of 3.0%–6.0%. Annual average inflation inched down from July’s 5.0% to 4.9% in August, the lowest reading since November 2011.

Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.1% over the previous month, which was below the 1.0% increase observed in the previous month. Annual core inflation of 5.5% in August 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 August 2015

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


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