Market News
South African inflation rises less than expected in May - REUTERS
JOHANNESBURG, June 17 (Reuters) – South Africa’s headline consumer inflation quickened less than expected in May, rising to 4.5% year on year from 4.0% in April, data from the statistics agency showed on Wednesday.
In month-on-month terms inflation was at 0.7% in May, compared with 1.1% in April.
Economists polled by Reuters had expected annual inflation would accelerate to 4.7%, as the impact of the U.S.-Israel war against Iran fed through into fuel and food prices.
As a net fuel importer, South Africa is heavily exposed to the spike in global energy prices.
South Africa’s central bank targets inflation of 3%, with a 1 percentage point tolerance band either side.
At its last monetary policy meeting in May it raised its main lending rate for the first time in three years. Its next scheduled policy meeting is on July 23.
