Inflation Rate Hits 7.1% in South Africa

Inflation Rate Hits 7.1% in South Africa
South Africa, Market

Inflation Rate Hits 7.1% in South Africa

Amidst economic uncertainties, South Africa’s annual inflation rate rose for the second consecutive month in March, prompted again by accelerating food prices.

Consumer prices increased 7.1% on year in March compared with the same month of 2022, up from the 7.0% annual rise registered in February, data from Statistics South Africa showed Wednesday.

The increase in inflation was driven by higher prices for food and nonalcoholic beverages, which increased 14.0% on year, the largest annual rise since March 2009. Milk, eggs and cheese, confectionary, and fruit and vegetables in particular were affected by upward inflationary pressure, the statistics agency said.

But transport inflation ticked down to a still-high 8.9% from 9.9%, cooled by lower fuel prices. Goods inflation was 9.4% on year, while for services it was 4.5%, both slightly down from 9.5% and 4.6% in the prior month, it added.

South Africa’s reserve bank raised its main repo rate to 7.75% in late March in an effort to curb inflation, which adds to an economy buffeted by an electricity crisis and a weak currency. # Inflation Rate Hits 7.1% in South Africa

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