Lower food costs helped bring inflation down - Stats SA

JOHANNESBURG - Lower food costs have again helped to bring inflation down, as Stats SA records a second consecutive drop in the rate.

The inflation print for April came in at 5.2% from 5.3% in March.

This was slightly lower than market expectations, which forecast inflation to remain unchanged.

Despite another drop in inflation, the rate remains sticky.

Inflation hasn't dropped below the 5% mark since last August.

Although inflation is still within the reserve bank's target band of 3% and 6%, it's well above the mid-point that the central bank generally aims for.

Chief director for price statistics at Stats SA, Patrick Kelly, said that most food and non-alcoholic beverage sub-categories saw lower annual rates, with the exception of vegetables, fruit and hot beverages.

"On average, vegetable prices increased by 7.4% in the 12 months to April, higher than the 6.0% increase recorded in March. The annual rate for fruit rose from 3.3% in March to 4.5%, mainly driven by higher prices for bananas and apples."

The latest reading comes a week before the reserve bank’s monetary policy committee meets to decide on the repo rate.