Inflation unchanged at 5.9%

Johannesburg - SA’s consumer price index (CPI)‚ which the Reserve Bank uses to target inflation‚ was unchanged at 5.9% year on year in April‚ Statistics SA (Stats SA) said on Wednesday.

The inflation rate was expected to have come in at 5.8% year on year‚ according to a survey of leading economists by I-Net Bridge.

Forecasts among the ten economists ranged from 5.6% to 5.9%.

CPI increased by 0.4% month on month in April from 1.2% month on month in March.

The annual average consumer inflation rate was 5.6% last year compared to 5.0% in 2011 and 4.3% in 2010.

The food and non-alcoholic beverages index increased by 0.5% between March and April‚ while the annual rate increased to 6.2% in April from 5.7% in March.

The following components in the food and non-alcoholic beverages index increased: vegetables (3.2%)‚ fruit (1.0%)‚ sugar‚ sweets and desserts (1.0%)‚ fish (0.9%)‚ bread and cereals (0.7%)‚ hot beverages (0.6%)‚ milk‚ eggs and cheese (0.2%) and cold beverages (0.2%).

The following components decreased: oils and fats (-1.0%) and meat (-0.4%).

The alcoholic beverages and tobacco index increased by 1.2% between March and April‚ mainly due to increases in excise duties. The annual rate increased to 6.5% in April from 5.8% in March.

The transport index increased by 0.5% between March and April‚ mainly due to a 12c/litre increase in the price of petrol. The annual rate decreased to 6.2% in April from 7.5% in March.

The miscellaneous goods and services index increased by 0.4% between March and April. The annual rate increased to 7.5% in April from 7.4% in March.

The provinces with an annual inflation rate lower than or equal to headline inflation were KwaZulu-Natal (5.8%)‚ Mpumalanga (5.8%)‚ Northern Cape (5.7%)‚ Western Cape (5.6%)‚ Free State (5.6%) and Eastern Cape (5.4%).

The provinces with an annual inflation rate higher than headline inflation were Limpopo (6.4%)‚ Gauteng (6.1%) and North West (6.0%).