Consumer inflation softens in June: Stats SA

Statistics South Africa found annual consumer price inflation was 5.1% in June, inching down from 5.2% in May.

Stats SA released the data on Wednesday along with data indicating the consumer price index (CPI) increased by 0.1% month-on-month in June.

"The main contributors to the 5.1% annual inflation rate were housing and utilities, miscellaneous goods and services, food and non-alcoholic beverages and transport," it said.

Housing and utilities increased by 5.5% year-on-year and contributed 1.3 percentage points. Miscellaneous goods and services increased by 7% year-on-year and contributed 1.0 percentage points.

Food and non-alcoholic beverages increased by 4.6% year-on-year and contributed 0.9 of a percentage point. Transport increased by 5.5% year-on-year and contributed 0.8 of a percentage point.

"In June the annual inflation rate of goods was 5.5%, down from 5.7% in May, and services was 4.6%, down from 4.7% in May."

The CPI excluding food and nonalcoholic beverages, fuel and energy went up 0.4% from May to June and 4.5% year-on-year.

Announcing the repo rate in Pretoria last week, South African Reserve Bank governor Lesetja Kganyago said the monetary policy committee (MPC) left the rate unchanged at 8.25% as the central bank continues to try to drive inflation to the midpoint of the 4.5% target band.

“In discussing the stance, MPC members agreed restrictive policy remains appropriate to stabilise inflation at 4.5%. The committee assessed an unchanged stance remained appropriate given the inflation risks,” he said.

“Some members, however, were of the view that the inflation outlook had improved enough to reduce the degree of restrictiveness.”

Kganyago said global price increases were easing but inflation levels in some countries were not yet easing within those economies’ target ranges.

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