Consumer inflation exceeds economists’ expectations in July
Inflation, as measured by the annual change in CPI, accelerated 3.2% year on year in July from 2.2% previously
Consumer inflation, as measured by the consumer price index (CPI), rose in July, exceeding economists’ forecasts as lockdown measures eased.
Inflation, as measured by the annual change in CPI, accelerated 3.2% year on year in July from 2.2% previously, marking the first time the inflation print is within the SA Reserve Bank’s 3%-6% target band since April.
It had accelerated 1.3% month on month, which was supported by fuel prices and municipal tariffs, data from Stats SA showed on Wednesday.
The forecast among economists polled by Bloomberg was for inflation to have ticked up to 3% in July.
The main contributors to the annual figure were food and non-alcoholic beverages, housing and utilities as well as miscellaneous goods and services.
Food and non-alcoholic beverages increased 4.3% year on year while housing and utilities climbed 3.2% and miscellaneous goods and services up 6.7%.