South African Inflation Slows To 2-Year Low Of 4.7%

(RTTNews) - South Africa's consumer price inflation eased more-than-expected in July to the lowest level in two years, largely due to a slowdown in food prices and cheaper transport charges, figures from Statistics South Africa showed on Wednesday.

The consumer price index, or CPI, rose 4.7 percent year-on-year in July, slower than the 5.4 percent increase in June. Economists had expected inflation to ease to 5.0 percent.

Moreover, this was the weakest inflation rate since July 2021, when prices had risen 4.6 percent.

In addition, the inflation rate remained within the Reserve Bank's target range of 3-6 percent.

The core inflation, which excludes prices of non-alcoholic beverages, fuels, and energy, also moderated to 4.7 percent in July from 5.0 percent in June. The expected rate was 4.9 percent.

Prices for food and non-alcoholic beverages alone grew 9.9 percent in July from last year, but slower than June's 11.0 percent spike.

On the other hand, transport costs dropped 2.6 percent amid a 16.8 percent plunge in fuel prices.

On a month-on-month basis, consumer prices increased 0.9 percent versus an expected increase of 1.1 percent. Core consumer prices rose 0.5 percent.