South Africa: Inflation reaches lowest level in over a year
January 21, 2015
In December, consumer prices fell 0.18% over the previous month, which was below the flat reading seen in November. According to Statistics South Africa, December’s result reflects lower prices for food as well as non-alcoholic beverages.
Annual inflation fell from 5.8% in November to 5.3% in December, thus recording the lowest level since November 2013. Inflation remains within the Central Bank’s target range of 3.0%-6.0%. Annual average inflation was stable at November’s 6.1% in December.
Core consumer prices, which exclude prices for food, fuel and electricity, rose 0.2% over the previous month, which was above the 0.1% increase observed in the previous month. Annual core inflation inched down from 5.8% in November to 5.7% in December.
Author: Dirina Mançellari, Senior Economist