South Africa Inflation April 2017

South Africa

South Africa: Inflation slows to seven-month low in April

May 24, 2017

In April, consumer prices in South Africa inched up 0.1% from the previous month, which was down from the 0.6% increase in March and the lowest print in four months. April’s monthly increase in prices is the result of a slightly faster increase in prices for clothing and footwear and health.

Inflation moderated for the fourth consecutive month in April, decreasing from 6.1% in March to 5.4%. The result was slightly below the 5.6% the markets expected and marked a seven-month low. Inflation in April came within the Central Bank target range of 3.0%-6.0% for the first time in eight months. Annual average inflation inched down to 6.2% from 6.3% in March.

Core consumer prices—which exclude food, non-alcoholic beverages, energy and gasoline—rose 0.2% in April from the previous month, down from 0.7% in March. Core inflation inched down from 4.9% in March to 4.8% in April, the lowest level in over four years.

The Central Bank revised its inflation forecast for this year and expects it to average 5.9% in 2017 (previous estimate: 6.2%). For 2018, the Bank left its forecast relatively unchanged and sees it averaging 5.4% (previous estimate: 5.5%). FocusEconomics Consensus Forecast panelists expect inflation to average 5.8% in 2017, which is unchanged from last month’s forecast. In 2018, the panel sees average inflation of 5.6%.


Author:, Economist

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South Africa Inflation Chart


South Africa Inflation April 2017

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


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