South Africa

South Africa Inflation November 2023

South Africa: Inflation recedes in November

Inflation came in at 5.5% in November, down from October’s 5.9%. November’s slowdown, the first in four months, was larger than had been anticipated by some market analysts and brought inflation closer to the mid-point of the South African Reserve Bank (SARB)’s 3.0–6.0% target band. Looking at the details of the release, November’s deceleration chiefly reflected slower price increases for transport. These more than offset stronger price growth for food, as well as housing and utilities.

Accordingly, the trend pointed down, with annual average inflation edging down to 6.1% in November (October: 6.2%). Meanwhile, core inflation rose to 4.5% in November from October’s 4.4%.

Lastly, consumer prices fell 0.09% from the previous month in November, contrasting the 0.89% increase recorded in October. November’s result marked the weakest reading since January.

November’s softer headline inflation is unlikely to be sufficient for the SARB to begin cutting interest rates when it convenes next on 25 January, with the Bank likely to leave rates unchanged for the fourth consecutive meeting. Meanwhile, inflation in December should have decelerated again amid expected additional fuel price cuts. If the disinflation trend consolidates, the SARB will kick off its monetary policy loosening cycle.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest