South Africa’s annual inflation rate eased to 7.4% in November of 2022 from 7.6% in the prior month, below market expectations of 7.5% but still above the upper limit of the South African Reserve Bank’s target range of 3%-6%.
It was the lowest reading since June, mainly due to a slowdown in prices of transportation (15.3% vs 17.1% in October), necessitated by a drop in fuel costs (25.3% vs 30.1%).
Meanwhile, prices edged higher for other CPI items, such as food & non-alcoholic beverages (12.5% vs 12%); restaurants & hotels (7.9% vs 7.8%); alcoholic beverages & tobacco (6.5% vs 6.2%) and household contents and services (5.6% vs 5.5%).
The annual core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, stood at an over 5-1/2-year high of 5% in November, unchanged from the prior month.
On a monthly basis, consumer prices were up by 0.3%, following a 0.4% rise in the prior month and slightly above market forecasts of a 0.2% increase.
The country’s central bank in November raised borrowing costs by 75 basis points for a third straight meeting.
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