South Africa-Economy-Inflation

S/Africa’s inflation eases to 4.5% in December – Agency

APA-Pretoria (South Africa)

South Africa’s annual headline consumer price inflation eased to 4.5 percent for December 2018, Statistics South Africa said on Wednesday.

The figure is down by 0.7 of a percentage point from the inflation rate of 5.2% in November 2018. Inflation for October was 5.1%, the agency said.

"On average, prices decreased by 0.2% between November 2018 and December 2018," Stats SA said.

Ahead of the announcement on Wednesday morning analysts had estimated that inflation would range between 4.3% and 4.5% on the back of a substantial decline in fuel costs.

Stats SA also announced that average annual consumer price inflation for the whole of 2018 was 4.7%, some 0.6 of a percentage point lower than the corresponding average of 5.3% in

Speaking from Davos (Switzerland) in an interview, South African Reserve Bank governor Lesetja Kganyago said if inflation was at the midpoint of the bank’s targeted range between 3% and 6%, this would allow flexibility to deal with shocks.

NM/jn/APA

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