Consumer inflation hits 4-year high
The spike in the fuel price is being blamed for South Africa’s soaring consumer inflation numbers.
Stats SA says the consumer price index (CPI) hit 5.5% year-on-year in November, its biggest annual increase since March 2017 when the rate was 6.1%.
Chief Director for Price Statistics Patrick Kelly says inflation was mostly driven up by rising transport costs.
“The transport category continues to be the major factor behind inflation, recording an annual increase of 15% in November. This makes it the only major group in the inflation basket with an annual rate above the 6% upper limit of the South African Reserve Bank’s monetary policy target range,” says Kelly.
The South African Reserve Bank’s monetary policy committee raised the repo rate by 25 basis points at its last meeting for the year in November.
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