S.African official inflation reaches 6.1% in November

14th December 2011, Comments 0 comments

Annual inflation in South Africa rose from 6.0 percent in October to 6.1 percent in November, missing the central bank target, the national statistics agency said on Wednesday.

Rising prices of food, transport and cultural products pushed the consumer price index up 0.3 percent, according to Statistics South Africa.

Inflation is now above the target of three to six percent set by the South African Reserve Bank, but the rise had been expected. The 2008 financial meltdown saw price rises run at double digits, only to return within the target band in the last quarter of 2009.

Reserve Bank governor Gill Marcus predicted inflation would total 6.2 percent in the first trimestre of 2012 before falling to within the ceiling and stabilising around 5.5 percent by the end of 2013.

The average inflation rate in 2010 had been 4.3 percent, after 7.1 in 2009.

The Reserve Bank rate has stayed unchanged at 5.5 percent since November last year -- the lowest in 30 years. Over the past months the bank has hesitated between inreasing the rate gradually or reducing it further to counter an economic slowdown.

© 2011 AFP

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