Inflation up to 6%

The year-on-year increase in the consumer price index in March was slightly above expectations.

The South African Reserve Bank building, Pretoria. Picture: Google Maps.

JOHANNESBURG - South Africa's headline consumer inflation quickened to 6,0 percent year-on-year in March, slightly above market expectations, Statistics South Africa said on Wednesday.

This figure was up by 0,1 percent from 5,9 in February

On a month-on-month basis, prices increased by 1,3 percent in March from 1,1 percent previously.

Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, edged up to 5,5 percent year-on-year in March from 5,3 percent.

However, this figure was unchanged at 1,2 percent month-on-month compared with February.

The six percent figure is at the inflation ceiling set by South African Reserve Bank.

This could prompt the Monetary Policy Committee to hike rates during its next meeting in a bid to bring inflation within the target range.

Listen to The Money Show's Bruce Whitfield discussing the increase with economist Kevin Lings.