South Africa’s consumer price inflation eased slightly, as expected, in December to the lowest level in seven months, mainly due to a moderation in transport charges, figures from Statistics South Africa showed on Wednesday.
The consumer price index, or CPI, rose 7.2 percent year-on-year in December, following a 7.4 percent increase in November.?
However, the inflation rate continues to be higher than the 3 to 6 percent goal range set by the South African Reserve Bank.
The core inflation, which excludes prices of non-alcoholic beverages, fuels and energy, also slowed marginally to 4.9 percent in December from 5.0 percent a month ago. That was below the expected gain of 5.1 percent.
Transport costs increased by 13.9 percent annually, the largest among the major components, though at a slower rate than the 15.3 percent increase seen in November due to a drop in gasoline prices.
Prices of food and non-alcoholic beverages grew 12.4 percent, and charges for housing and utilities were 4.1 percent more expensive compared to last year.
On a month-on-month basis, consumer prices increased 0.4 percent in December versus an expected gain of 0.3 percent.
During the year 2022, average annual consumer price inflation was 6.9 percent versus 4.5 percent in 2021.