South Africa Inflation Accelerates More Than Forecast

(RTTNews) - South Africa's consumer price inflation accelerated more-than-expected in July to remain its strongest level in more than thirteen years, figures from Statistics South Africa showed on Wednesday.

The consumer price index climbed 7.8 percent year-on-year in July, faster than the 7.4 percent rise in June. That was above the 7.7 percent increase expected by economists.

Moreover, this was the highest inflation rate since May 2009, when prices had grown 8.0 percent.

The main contribution came from prices of food and non-alcoholic beverages, housing and utilities, transport, and miscellaneous goods and services, the statistical office said.

Transport costs grew the most, by 25.0 percent, annually in July amid higher fuel prices. This was followed by a 9.7 percent rise in prices of food and non-alcoholic beverages.

Housing and utilities costs grew 4.0 percent and those for miscellaneous goods and services increased 3.6 percent.

In July, inflation for goods accelerated to 11.5 percent, while that for services rose to 4.2 percent.

On a month-on-month basis, consumer prices went up 1.5 percent in July, almost in line with the 1.42 percent rise expected by economists.

The core inflation, which excludes prices of non-alcoholic beverages, fuels and energy, rose to 4.6 percent in July versus an increase of 4.5 percent.