FX.co ★ South Africa Inflation Rises To 5.6%, Highest In 4 Months

The consumer price inflation in South Africa continued to climb in February, reaching a four-month high, according to data released by Statistics South Africa. Consumer price index (CPI) grew by 5.6% from the previous year in February, compared to a 5.1% growth in January. This growth was marginally above the anticipated increase of 5.5%.

That being said, the inflation rate remained within the parameters of 3-6% set by the country's Reserve Bank. The core inflation, which does not take into account the prices of non-alcoholic beverages, fuel, and energy, went up to 5.0% from 4.6%, slightly above the projected rate of 4.8%.

On the matter of annual price growth, transport costs considerably escalated to 5.4% from 3.6%, largely contributing to the overall increase in inflation. However, the rates of growth for prices of food and non-alcoholic drinks were more modest, expanding at 6.1% in February year-on-year, while prices for housing and utilities saw a rise of 5.8%.

Furthermore, on a monthly basis, consumer prices saw a growth of 1.0%, slightly surpassing the projected increase by 0.1%.