CPI drops to 6 percent

CPI drops to 6 percent

Inflation is the lowest it's been all year. Stats SA on Wednesday said the Consumer Price Index (CPI) in July 2016 was 6,0 percent.

CPI July 2016
Image: Stats SA

This rate was 0,3 of a percentage point lower than the corresponding annual rate of 6,3% in June 2016.


On average, prices increased by 0,8% between June 2016 and July 2016.


Econometrix economist Azaar Jarmine says the drop is slightly more than expected.


"The main reasons for the decline were the fact that the petrol price rose by much less in July this year than in July last year and secondly, ironically, the 9,4 percent tariff increase announced by Eskom was substantially less than the 12,7 percent increase in electricity tariffs last year," Jarmine said.

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