Consumer inflation increases to 5.2% in November

Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, was at 4.4% in November up from 4.2% in October.

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JOHANNESBURG - Stats SA says consumer inflation increased to 5.2% year-on-year in November from 5.1% in October.

On a month-on-month basis, prices rose 0.2% from 0.5% in October.

Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, was at 4.4% in November up from 4.2% in October.

Transport costs and food products were the major drivers of inflation in November.

The transport index edged up 0.6% month-on-month, due to the 1.1% increase in fuel prices.

Petrol prices remained unchanged in November, but diesel and illuminating paraffin prices went up.

Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, was at 4.4% year-on-year in November up from 4.2% in October.

The South African Reserve Bank Monetary Policy Committee increased interest rates in November by 25 basis points to 6.75%, citing increasing risks to the inflation outlook.

Inflation remains within the bank’s target of three to six percent but has moved away from the banks desired midpoint of 4.5%.