South Africa’s Inflation Continues to Retreat

By Xinhua 

July 20, 2023

South Africa’s consumer inflation continues to retreat, which cooled to 5.4 percent in June from 6.3 percent in May, official data showed Wednesday.

The level was below the upper limit of the inflation target range set by the South African Reserve Bank, the country’s central bank, said Statistics South Africa.

The inflation rate in June is the lowest reading in 20 months since October 2021, when the rate was 5 percent, according to the national statistical service.

In June, inflation for food and non-alcoholic beverages slowed for the third successive month, cooling to 11 percent from a high of 14 percent in March.

Transport inflation also tumbled from 7 percent in May to 1.8 percent in June, dragged lower mainly by softer fuel prices, the data showed.

The South African Reserve Bank has increased the repurchase rate three times this year as a result of the country’s high inflation. The central bank is expected to unveil its latest policy on repurchase rates Thursday.