S.African inflation hits 6% ceiling
South African consumer inflation in October hit its 6.0 percent ceiling after rising 0.3 percentage points from September, the national statistics agency said on Wednesday.
“On average, prices increased by 0.5 percent between September 2011 and October 2011,” the agency added.
The Reserve Bank set the inflation target at three to six percent but the 2008 financial meltdown saw price rises run at double digits, only to return within the target band in the last quarter of 2009.
Food and non-alcoholic beverages were the main contributors to the higher inflation, followed by transport.
“Inflation has slowly been going up, it is likely to remain outside the target band for the most part of 2012,” said Carmen Alterkirch, an economist at Nedbank.
According to Alterkirch, the weak rand and high fuel prices were likely to push up inflation.
“It is likely to hover around 6.0 to 6.5 percent by the end of 2012,” said Alterkirch.