South Africa’s headline annual consumer price inflation accelerated for the fourth consecutive month in June, but came in well below market expectations, giving some breathing room to rate setters who struggle to find a balance between rising inflation and lacklustre economic growth.
June’s inflation edged up to a 6-month high of 4.7% y/y from 4.6% y/y in May, driven by transport costs, which returned to growth, data from Statistics South Africa showed. The consensus view was for 5%, according to a Business Day survey. The monthly inflation ticked up to 0.4% from 0.3%.
The central bank is due to announce its rate decision on July 23 and most analysts expect it to hike the key repo rate by 25bp after holding it at 5.75% for a year.
The annual core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy eased to 5.5% last month from 5.7% in May, suggesting somewhat reduced inflationary pressures. The monthly core inflation nudged up to 0.3% from 0.2%.
|y/y inflation||contribution to the y/y change in headline CPI||m/m inflation|
|Food and non-alcoholic beverages||4.7%||4.7%||0.7||0.7||0.4%||0.6%|
|Alcoholic beverages and tobacco||9.7%||9.7%||0.5||0.5||0.2%||0.6%|
|Clothing and footwear||5.6%||5.4%||0.2||0.2||0.4%||0.3%|
|Housing and utilities||5.4%||5.6%||1.3||1.3||0.7%||0.0%|
|Household contents and services||2.3%||2.6%||0.1||0.1||0.9%||0.1%|
|Recreation and culture||2.0%||1.8%||0.1||0.1||0.3%||0.0%|
|Restaurants and hotels||6.1%||6.4%||0.2||0.2||0.3%||0.9%|
|Miscellaneous goods and services||7.2%||7.4%||1.1||1.1||-0.1%||0.2%|
|Source: Staistics South Africa|
Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more
South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more
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