2024.02.2108:22:00UTC+00South Africa Inflation Accelerates For First Time In 3 Months

South Africa's consumer price inflation increased for the first time in three months in January, preliminary data from Statistics South Africa showed Wednesday.

The consumer price index, or CPI, rose 5.3 percent year-on-year following a 5.1 percent increase in December.

Headline inflation slowed since October, when it peaked at 5.9 percent.

The main contributors to the annual inflation rate in January were food and non-alcoholic beverages, housing and utilities, miscellaneous goods and services and transport, the statistical office said.

Compared to the previous month, the headline CPI edged up 0.1 percent in January.

The CPI excluding food and non-alcoholic beverages, fuel and energy rose 4.6 percent year-on-year and 0.3 percent from the previous month.

The South African Reserve Bank aims to keep inflation between 3 percent and 6 percent.

The central bank, led by Governor Lesetja Kganyago, left the key interest rate at 8.25 percent in January, where it has been since May last year.

The SARB forecast headline inflation to slow to 5.0 percent this year from 6.0 percent last year, and further to 4.6 percent in 2025 and to 4.5 percent the year after.

Core inflation, which averaged 4.9 percent last year, is projected to slow to 4.6 percent this year and remain there next year. The rate is forecast to ease further to 4.5 percent in 2026.