South Africa’s headline consumer inflation jumped to 7.8% year on year in July from 7.4% in June, data from Statistics South Africa shows.
On a month-on-month basis, consumer inflation was at 1.5% in July from 1.1% in the previous month.
Core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, rose to 4.6% year on year in July, from 4.4% previously. On a month-on-month basis core inflation was at 0.7% from 0.6% in June.
Last month, South Africa’s central bank unveiled the biggest increase in interest rates for nearly 20 years in the continent’s most industrial economy, joining the wave of policymakers trying to tackle surging global inflation.
The South African Reserve Bank raised its main benchmark rate by three-quarters of a percentage points to 5.5%. This was more than expected as the bank warned that aftershocks from the war on Ukraine would be felt in food and fuel prices throughout the year.
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