Johannesburg – South African inflation dropped to the lowest level in 20 months in June, slipping back within the central bank’s target range, official data showed on Wednesday.
Annual consumer price inflation slowed to 5.4% last month, down from 6.3 percent in May, national statistics agency StatsSA said in a statement.
The drop was the steepest since May 2020 and brought the rate within the Reserve Bank’s 3% to 6% target range for the first time since April 2022, the agency said.
“The rate in June is the lowest reading in 20 months,” it said.
Price rises for food and non-alcoholic beverages slowed to 11 percent from a high of 14% in March.
Annual #CPI inflation retreated to its lowest level in 20 months, cooling to 5,4% in June from 6,3% in May.
Listen here for more: https://t.co/d0qCjTklXk#StatsSA #Inflation pic.twitter.com/099JRlkEiA
— Stats SA (@StatsSA) July 19, 2023
Prices of oils and fats also decreased for a tenth consecutive month.
Wine and beer were instead on the up, pushing prices for alcoholic beverages and tobacco to 6.1% from 5.9% in May.
“Annual transport inflation tumbled from 7.0% in May to 1.8% in June, dragged lower mainly by softer fuel prices,” StatsSA added.
Policymakers around the world are battling elevated inflation caused largely by surging energy and food prices following Russia’s invasion of Ukraine.
South Africa’s central bank raised its main interest rate to 8.25% – a 14-year high – in May. It added that it expected inflation to average at 6.2% this year.
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Source: AFP
Picture: Unsplash
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