South Africa Inflation At 8-Month Low, Retail Sales Fall

(RTTNews) - South Africa's consumer price inflation eased further at the  start of the year to the lowest level in eight months, mainly due to a moderation in transport charges amid reduced fuel costs, figures from Statistics South Africa showed on Wednesday.

Separate official data revealed that retail sales declined in December after rebounding in the previous month.

The consumer price index, or CPI, rose 6.9 percent year-on-year in January, following a 7.2 percent increase in December. That was in line with economists' forecast.

However, the inflation rate continues to be higher than the 3 to 6 percent target range set by the South African Reserve Bank.

The core inflation, which excludes prices of non-alcoholic beverages, fuels and energy, came in at 4.9 percent in January, unchanged from December.

Transport costs increased by 11.1 percent annually in January, though at a slower rate than the 13.9 percent increase seen in December due to a drop in fuel prices.

The overall inflation in January was largely attributed to the price developments in food and non-alcoholic beverages, which grew 13.4 percent, and costs for housing and utilities that rose 4.1 percent

On a month-on-month basis, consumer prices edged down 0.1 percent in January, as expected.

Another report showed that retail sales fell 0.6 percent annually in December, reversing a 0.8 percent increase in November. 

The largest negative contribution came from the sales of pharmaceuticals and medical goods, cosmetics and toiletries.

Compared to the previous month, retail sales also dropped 0.6 percent from November, when they advanced by 1.0 percent.