South Africa’s consumer price inflation eased slightly, as expected, in December to the lowest level in seven months, mainly due to a moderation in transport charges, figures from Statistics South Africa showed on Wednesday.
The consumer price index, or CPI, rose 7.2 per cent year-on-year in December, following a 7.4 per cent increase in November.
However, the inflation rate continues to be higher than the 3 to 6 per cent goal range set by the South African Reserve Bank.
The core inflation, which excludes prices of non-alcoholic beverages, fuels and energy, also slowed marginally to 4.9 per cent in December from 5.0 per cent a month ago. That was below the expected gain of 5.1 per cent.
Transport costs increased by 13.9 per cent annually, the largest among the major components, though at a slower rate than the 15.3 per cent increase seen in November due to a drop in gasoline prices.
Prices of food and non-alcoholic beverages grew 12.4 per cent, and charges for housing and utilities were 4.1 per cent more expensive compared to last year.
On a month-on-month basis, consumer prices increased 0.4 per cent in December versus an expected gain of 0.3 per cent.
During the year 2022, the average annual consumer price inflation was 6.9 per cent versus 4.5 per cent in 2021.
