South Africa Inflation Decelerated in June
|07/21/2021 | 04:35am|
By Maria Martinez
South Africa's annual consumer price inflation stood at 4.9%, falling from a 30-year high of 5.2% in May, Statistics South Africa said Wednesday.
The reading marks the second time annual inflation has been recorded above the midpoint of the central bank's target range of between 3% and 6% since coronavirus lockdown measures were imposed in March 2020.
The increase in consumer prices was largely due to rises in the cost of food and non-alcoholic beverages, which were up by 6.7% year-on-year in June.
Transport prices increased by 12.3% year-on-year, while the prices of housing and utilities also posted a strong increase, rising by 2.6% year-on-year.
In June the annual inflation rate for goods was 7.1%, down from 8.0% in May. For services it was 2.9%, up from 2,7% in May, Statistics South Africa said.
At a central bank meeting, South African Reserve Bank Governor Lesetja Kganyago said the risks to inflation are to the upside.
On Thursday, the South African Reserve Bank's Monetary Policy Committee will meet. It is expected to hold its main interest rate unchanged at 3.5%, according to economists polled by FactSet.
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires