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Cape Town - South Africa's annual consumer price inflation slowed to 6.2% in April 2016, in line with expectations, Statistics South Africa announced on Wednesday.
This rate was 0.1 of a percentage point lower than the corresponding annual rate of 6.3% in March 2016. On average, the consumer price index (CPI) rose by 0.8% between March 2016 and April 2016.
Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, was at 5.5% year-on-year in April from its big downside surprise to 5.4% y/y in March. Month-on-month it was at 0.3% from 0.9% in March.
Food price inflation, however, saw a strong monthly gain in April, up 1.9%. Year-on-year food price inflation is at 11.3%.
Drought conditions continue to have a marked effect on food prices, with data for the whole country showing vegetable prices rose a staggering 24.4% y/y; fruit went up by 19.6% y/y and bread and cereal by 17.5% in April 2016.
For urban areas, the gauge used by most analysts, the indices for vegetables (23% y/y), fruit (19.6%) and oils & fats (19.5%) rose sharply, while the indices for unprocessed food (14.1%), bread & cereals (14.9%) and sugars, sweets & desserts (11.2%) were also in double digit territory.
Transport contributed 0.4 of a percentage point in April. The index increased by 2.6% month-on-month, mainly due to a hike of 88 cents per litre in the petrol price.
