South African inflation creeps up to 4.6 percent

South Africa’s annual inflation rate rose slightly in May to 4.6 percent from 4.5 percent the previous month, official figures showed Wednesday, driven by rising housing and utilities prices.

Inflation in Africa’s most advanced economy hit a four-year low in February of 3.9 percent on the back of low oil prices.

Nedbank, one of the country’s largest lenders, said in a statement that the rate was now on an “upward trend” that should end the year at slightly below the central bank’s six percent upper target range.

“The increase will be mainly on the back of a weaker rand-dollar exchange rate as well as higher oil prices,” Nedbank said.

The growth of Africa’s second largest economy is expected to improve on last year’s 1.5 percent rise, but economists say the increase will be muted.