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%.
Author: Dirina Mançellari, Senior Economist