Inflation remains within Reserve Bank target range

Cape Town – Inflation remained within the South African Reserve Bank’s (SARB) inflation bracket of 3% to 6%, rising 0.3% to 5.4% in May from 5.3% in April.

Statistics South Africa announced the latest annual consumer price inflation on Wednesday.

The food and non-alcoholic beverages index increased by 6.9% year-on-year (y/y), while the transport index increased by 5.2% y/y, Stats SA said.

“In May the CPI for goods increased by 5.5% y/y and the CPI for services increased by 5.4% y/y,” it said.

“Provincial annual inflation rates ranged from 4.3% in Northern Cape to 6.5% in Western Cape.”

Inflation impacts on the country's repo rate. In May, the SARB left rates unchanged at 7%, meaning banks left their prime lending rate at 10.5%.

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