South Africa Consumer Inflation Climbed to 4.9% in August on Higher Fuel Prices

By Aaisha Dadi Patel

JOHANNESBURG--South Africa's annual consumer price inflation inched up to 4.9% in August from 4.6% in July, Statistics South Africa said Wednesday.

The reading marks the fourth consecutive month where the print is higher than the midpoint of the central bank's target range of between 3% and 6% annual inflation.

The increase was largely driven by fuel prices, which recorded all-time highs in August, up nearly 20% from a year earlier.

Transport plus food and non-alcoholic beverages were the highest contributors to the reading, recording increases of 9.9% and 6.9% year-on-year, respectively.

The South African Reserve Bank's monetary policy committee is widely expected to keep its main repo rate at a record low of 3.5% on Thursday. Governor Lesetja Kganyago said in July that he expects the South African economy to only return to its pre-pandemic level some time in 2023.

Aaisha Dadi Patel at [e-mail]

(END) Dow Jones Newswires

09-22-21 0438ET