November inflation ticks slightly higher to 5.2% | Fin24

November inflation ticks slightly higher to 5.2%

Dec 12 2018 10:03
Lameez Omarjee

November inflation ticked up to 5.2%, according to data released by Statistics South Africa (Stats SA) on Wednesday. 

This is up from inflation of 5.1% recorded for October. 

Analysts from NKC Economics had forecasted inflation to come in at 5.2%.

RMB Global Markets Research head Nema Ramkhelawan-Bhana expected inflation figures to be unchanged at 5.1%, due to "relatively stable" fuel prices.  

The main contributors to inflation were alcoholic beverages and tobacco which increased to 4.8%, year-on-year, followed by miscellaneous goods and services which increased by 5.5% year-on-year.

On a month-on-month basis, November inflation increased by 0.2%. The main contributors to monthly inflation were food and non-alcoholic beverages, up 0.4% and transport up 0.6%.

In November inflation for goods increased by 5.3% year-on-year, from 5.1% in October, and the inflation for services was unchanged at 5.1% year-on-year, according to Stats SA.

Stats SA tweeted that fuel inflation is up 23.1% compared to a year ago.

Similarly, rooibos tea is 18.5% more expensive than it was a year ago, according to Stats SA.

In a report Investec economist Lara Hodes commented that the subsiding fuel price should help improve December's inflation figures, which is likely to be 4.5%.

Consumer inflation is expected to average around 4.5% in 2019, which is the midpoint of the Reserve Bank's target range of 3% to 6%, she added. However, electricity tariffs and the weakening rand pose risks to inflation.

Retail sales data for October will be released at 13:00. NKC analysts expect sales growth to accelerate to 2.5%, from 0.7% recorded in September. 

US consumer inflation data will also be released later with expectations that it will decline to 2.2% from 2.5%, given weaker energy prices in November, according to NKC. 

stats sa  |  rand  |  inflation  |  retail  |  cpi


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

SARS has lifted the tax return threshold from R350 000 to R500 000 per year. What are your thoughts on this??

Previous results · Suggest a vote