South Africa’s consumer-price inflation rate rose to 5.9% in March from 5.7% in February, almost hitting the upper limit (6 per cent) of the Monetary Policy target range set by the South African Reserve Bank (SARB).
According to Statistics South Africa, the biggest contributor to the increase was transport prices, which rose 15.7% on the year. Other components posting sharp increases were food and non-alcoholic beverages, which recorded a rise of 6.2% compared with a year earlier, and housing and utility prices increased 4.8% year on year.
“The transport index in March was also driven higher by increases in toll fees, air transport, and bus fares,” Director for CPI Operations at Stats SA Lekau Ranoto.
Chief Economist at Efficient Group Dawie Roodt warned that inflation may keep rising for another year in South Africa to above six per cent, adding that this would be difficult for consumers.
Consequently, Month-on-month, consumer prices rose 1.0%.
This marks the 10th consecutive month in which annual inflation in Africa’s most developed economy has been higher than the midpoint of the central bank’s target range of between 3% and 6%.
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