South Africa: Inflation slows for a third consecutive month in March and reaches six-month low
April 19, 2017
In March, consumer prices in South Africa gained 0.6% from the previous month, which was down from the 1.1% increase in February. The monthly moderation stemmed from a slower increase in prices of food and non-alcoholic beverages and of alcoholic beverages and tobacco.
Inflation moderated for the third consecutive month in March, edging down to 6.1% from 6.3% in February. The result undershot the 6.3% the markets had expected and marked a six-month low. Despite the moderation, inflation remains slightly above the upper threshold of the Central Bank’s target range of 3.0%–6.0%. Inflation has been outside the target range for seven consecutive months. Annual average inflation remained unchanged at February’s 6.3% in March.
Core consumer prices—which exclude food, non-alcoholic beverages, energy and gasoline—rose 0.7% in March, down from 1.1% in February. Core inflation moderated from 5.2% in February to 4.9% in March, the lowest level in 16 months.
Author: Ricardo Aceves, Senior Economist