South Africa’s June inflation hits 6-month high, undershoots expectations

By bne IntelliNews July 22, 2015

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
  June-15 May-15 June-15 May-15 June-15 May-15
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%
Health 6.0% 7.0% 0.1 0.1 -0.3% 1.2%
Transport 0.7% -0.7% 0.1 -0.1 1.4% 0.3%
Recreation and culture 2.0% 1.8% 0.1 0.1 0.3% 0.0%
Education 9.3% 9.3% 0.3 0.3 0.0% 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%
Headline CPI 4.7% 4.6%     0.4% 0.3%
Source: Staistics South Africa            

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss