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South African inflation rate climbs to five percent

South Africa’s annual inflation rate rose to five percent in July, up from 4.7 percent the previous month, official data showed Wednesday.

Huge increases in water and electricity exerted the most pressure on the consumer price index.

“The housing and utilities index increased by 3.1 percent between June 2015 and July 2015, mainly due to a 9.8 percent increase in water and other services and an 11.2 percent increase in electricity and other fuels,” said national statistics agency StatSA.

The latest hike comes after the central bank last month raised its benchmark interest rate by 25 basis points to six percent in an attempt to dampen inflation, which is set to breach the bank’s upper-level six percent target range early next year.

Africa’s most advanced economy is experiencing anaemic growth, a weak currency, rising inflation and dire unemployment woes.

The South African Reserve Bank has revised growth forecasts down to two percent in 2015.