South Africa’s annual headline inflation stays at 5.9% in April

By bne IntelliNews May 22, 2013

South Africa’s annual headline inflation rate stood at 5.9% in April 2013, at the same level as in March, just below the upper end of the central bank’s 3%-6% target range, Statistics South Africa said. Compared month-on-month, consumer prices rose 0.4% in April, slower than the 1.2% growth in March.

The prices of food and non-alcoholic beverages grew 0.5% m/m last month, pushing the annual food inflation rate up to 6.2% from 5.7% in the previous month. Higher petrol prices led to a 0.5% monthly growth in transport prices, but the annual transport inflation rate fell to 6.2% last month from 7.5% in March.

According to analysts, the key driver for inflation was the weakness of the local currency, while demand has remained subdued. It is widely expected that the South African Reserve Bank would keep interest rates on hold at 5% at its Thursday (May 23) meeting in order to keep a balance between upside risks to inflation and a sluggish economy.

The central bank has projected headline inflation to rise to 6.3% in Q3, but to slow to 5.2% in Q4.

Related Articles

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

S&P downgrades South Africa's credit rating to junk after cabinet reshuffle

Standard & Poor’s ratings agency has cut South Africa's sovereign credit rating to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB', both with a negative ... more

Dismiss