South Africa inflation eases in March, Rand gains

Annual consumer price inflation in South Africa has eased to 5.3% in March from a four-month high of 5.6% in February, the latest data by Statistics South Africa showed.

March has been the 10th consecutive month, when the annual inflation rate remains within the South African Reserve Bank’s target range of 3%-6%.

In March, inflation has moderated for food & non-alcoholic beverages (5.1% YoY versus 6.1% YoY in February), alcoholic beverages & tobacco (4.5% YoY versus 4.8% YoY in February), transportation (5.3% YoY versus 5.4% YoY in February) and for restaurants & hotels (5.7% YoY versus 6.6% YoY in February).

Prices rose at a faster rate for miscellaneous goods & services (8.5% YoY versus 8.4% YoY in February) and education (6.3% YoY versus 5.7% YoY in February).

Meanwhile, the country’s annual core CPI inflation, which excludes volatile categories such as food and non-alcoholic beverages, fuels and energy, decelerated to 4.9% in March from an eight-month high of 5% in February.

In month-over-month terms, consumer prices in South Africa went up 0.8% in March, following a 1% surge in the prior month.

The South African Rand strengthened 0.49% on the day against the US Dollar, with the USD/ZAR currency pair last trading at 18.9460.