South African official inflation rises to 4.2%

17th May 2011, Comments 0 comments

South African inflation climbed to 4.2 percent in April, from 4.1 percent in March, driven upwards by rising fuel prices, the national statistics agency said on Tuesday.

"On average, prices increased by 0.3 percent between March 2011 and April 2011," Statistics SA said in a statement.

The transport index increased by 1.2 percent, mainly owing to a 5.6-percent jump in fuel prices, according to the agency.

Inflation remains within the government's target range of three to six percent, but is expected to keep rising as rising fuel and electricity costs filter through the economy.

The central bank's benchmark interest rate is at 5.5 percent, a 30-year low level, but market expectations are for monetary policymakers to begin pushing the rate up later this year.

© 2011 AFP

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