Statistics South Africa confirmed that consumer inflation has increased to 4.6% in June from 4.4% in May, which is due to a hike in housing, utilities and transport costs.
Stats SA informed that on a month-on-month basis, inflation rose to 0.4% in June from 0.2% in May.
Stats SA’s Patrick Kelly said “Price increase have been reported in the non-alcoholic beverages category and fish prices were up to 7.5% over the same period. The petrol price increased by 82c a litre in June and the annual fuel inflation now stands at 16%.”
Bloomberg said that the rand had its worst month in more than two years in June as the U.S. and China exchanged tariff blows at a time when the prospect of rising. American rates also weighed on emerging-market assets.
The weaker currency and higher oil prices added upside risks to inflation in Africa’s most-industrialized economy.
Economist at BNP Paribas SA, Jeffrey Schultz said South African Reserve Bank (SARB) isn’t going to be in a rush to raise rates.
“We’ve had five months where headline inflation has undershot expectations, and this is likely to neutralize some of the hawkish tones from the central bank” added Schultz.