South Africa’s CPI inflation eases to three-year low

Annual consumer price inflation in South Africa has eased to 4.6% in July from 5.1% in June, data by Statistics South Africa showed.

It has been the lowest inflation rate in three years and it further approached the South African Reserve Bank’s target of 4.5%.

Last month, inflation eased for:

– food and non-alcoholic beverages (4.5% YoY from 4.6% YoY in June);
– transport (4.2% YoY from 5.5% YoY in June);
– housing and utilities (5.3% YoY from 5.5% YoY in June).

Meanwhile, the country’s annual core CPI inflation, which excludes volatile categories such as food and non-alcoholic beverages, fuels and energy, decelerated to 4.3% in July from 4.5% in June.

It has been the lowest core inflation rate in more than two years.

The South African Rand was 0.80% weaker on the day against the US Dollar, with the USD/ZAR currency pair last trading at 17.9318 ahead of the FOMC minutes release and Fed Chair Powell’s speech at the Jackson Hole economic symposium.