South Africa Inflation Eases To 2.8%, Lowest Since June 2020

(RTTNews) - South Africa's consumer price inflation eased further in October to the lowest level in more than four years amid cheaper transportation costs, figures from Statistics South Africa showed on Wednesday.

The consumer price index, or CPI, climbed 2.8 percent year-on-year in October, slower than the 3.8 percent rise in September.

This was the lowest inflation rate since June 2020, when prices had risen 2.2 percent.

The core inflation, which excludes prices of non-alcoholic beverages, fuels, and energy, softened to 3.9 percent from 4.1 percent.

Transport charges were 5.3 percent lower compared to last year as fuel prices plunged by 14.8 percent. The annual price growth in food and non-alcoholic beverages eased to 3.6 percent from 4.7 percent, the lowest since November 2019. Meanwhile, housing and utility costs grew at a steady pace of 4.8 percent.

On a month-on-month basis, consumer prices edged down 0.1 percent, while core consumer prices rose by 0.2 percent.

The SARB may be encouraged to make another interest rate drop during its monetary policy announcement on Thursday due to the present weakening trend in inflation.