Consumer price inflation increases to 6.4%, higher than expected
Stats SA says consumer price inflation has increased to 6.4% in October from 6.1% in September.
JOHANNESBURG – Statistics South Africa (Stats SA) says consumer price inflation has increased to 6.4% in October from 6.1% in September.
This is higher than economists had expected.
The figure is used by the Reserve Bank to determine whether or not to increase interest rates.
Core inflation, which excludes the price of food, non-alcoholic drinks, petrol and energy increased slightly to 5.7%.
Economist Mohammed Nalla says, “Food price inflation, coming from 11.7% on a year-on-year basis, has obviously been exacerbated by the drought conditions that we’ve had earlier this year.
Nalla says, “And hopefully the kind of rain that we’ve been getting more recently will lead to a massive alleviation in terms of food pricing inflation over the course of the coming months.”