What Is the Current Inflation Rate In South Africa

What is an Inflation Rate?

Inflation is the rate of increase in prices over a given period of time.

Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

What Is the Current Inflation Rate In South Africa?

South Africa’s annual inflation rate fell further to a two-year low of 4.7% in July 2023, from June’s 5.4% and below market forecasts of 5%,

moving further within the central bank’s target range of 3%-6%.

Is South Africa experiencing inflation?

Statistics South Africa said headline consumer inflation slowed to 4.7% year-on-year in July from 5.4% in June (ZACPIY=ECI),

a bigger drop than the 5.0% year-on-year rate analysts polled by Reuters had predicted. On a month-on-month basis, consumer inflation was at 0.9% in July, versus expectations for 1.1%.

Why is inflation increasing in South Africa?

The electricity crisis in South Africa has led to persistently record-setting power outages, adding substantial costs across food value chains.

Ultimately, this higher cost of production is passed down to the consumer raising food price inflation.

How is inflation calculated in South Africa?

The consumer price index (CPI) is the official measure of consumer inflation in South Africa. The CPI is based on the total expenditure of all South African households in a particular year.

The proportions of this expenditure form the weights of the CPI.