South Africa inflation drops for second consecutive month

The monthly inflation rate in South Africa eased again in December, dropping 0.4 percentage points to 5.1 percent as food price hikes slowed, official data showed on Wednesday.

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The average inflation rate for 2023 was 6.0 percent, 0.9 percentage points lower in 2022 and matching the upper limit of the central bank’s official target range, national statistics agency StatsSA said.

“Inflation was relatively hot in the first five months of 2023 (January-May), with the headline rate consistently above 6.0 percent,” the agency said.

“Inflation eased below this level for the remaining seven months of the year.”

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The highest reading in 2023 was 7.1 percent in March, while the lowest was recorded in July at 4.7 percent.

In December the inflation rate for food and non-alcoholic beverages was 8.5 percent, down from nine percent in November. Fuel prices were also down 2.7 percent, StatsSA said.

The central bank has set a target for inflation of between three and six percent and kept its main interest rate unchanged at 8.25 percent in November.

By Garrin Lambley © Agence France-Presse