South Africa’s (SA) headline consumer inflation quickened less than expected in May, rising to 4.5% year on year from 4.0% in April, data from the statistics agency showed, opens new tab on Wednesday.
In month-on-month terms inflation was at 0.7% in May, compared with 1.1% in April.
Economists polled by Reuters had expected annual inflation would accelerate to 4.7%, as the impact of the United States (US)Israel war against Iran fed through into fuel and food prices.
As a net fuel importer, SA is heavily exposed to the spike in global energy prices.
SA’s Central bank targets inflation of 3%, with a 1%-point tolerance band either side.
At its last monetary policy meeting in May it raised its main lending rate for the first time in three years. Its next scheduled policy meeting is on July 23.
–Reuters–
