South Africa June inflation steady at 6.6%: official data

23rd July 2014, Comments 0 comments

South African inflation was steady at 6.6 percent in June, as the economy continued its weak streak, data from the national statistics agency showed on Wednesday.

Household goods and food were the main drivers of inflation, with cash-strapped consumers expected to come under pressure.

The rate breached the upper limit of the inflation target range of 6.0 percent in April 2014, as petrol and food price inflation quickened notably.

Nedbank, one of South Africa's four biggest banks said it expected "inflation to remain elevated during the remainder of this year and into the first half of 2015" because of the weakness of the rand.

Last week, the central bank raised interest rates by 25 basis points to 5.75 percent, reiterating its concert about weak growth.

The central bank reduced its 2014 growth forecast last month from 2.6 percent to 2.1 percent.


© 2014 AFP

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