Inflation accelerated drastically to 6.2% in January compared with a year ago‚ from 5.2% year on year in December as food prices spiked and the effects of a weaker rand on prices become more apparent‚ Statistics SA data showed on Wednesday.
This is the first time since August 2014 that inflation has breached the upper end of the 3%-6% target band.
Inflation increased by 0.8% month on month in January.
Data showed that the food and non-alcoholic beverages index increased from 5.9% year on year to 6.9% year-on-year in January.
The latest data justifies the Reserve Bank’s 50 basis point rate hike in January to tame rising inflation. Rates were raised significantly despite concern from some sectors that it may further weaken economic growth.
Alcoholic beverages and tobacco increased from 6.6% year on year to 8.3% year on year in January.
The transport and recreation and culture indices rose sharply on a year-on-year basis.
Food and non-alcoholic beverages were also behind the rise in inflation during the month mainly due to higher fruit and vegetable prices.
In January‚ goods inflation rose by 6.5% year on year from 4.6% in December‚ while services inflation increased by 6% year on year from 5.7% in December.
Data shows how much food prices have risen
Inflation accelerated drastically to 6.2% in January compared with a year ago‚ from 5.2% year on year in December as food prices spiked and the effects of a weaker rand on prices become more apparent‚ Statistics SA data showed on Wednesday.
This is the first time since August 2014 that inflation has breached the upper end of the 3%-6% target band.
Inflation increased by 0.8% month on month in January.
Data showed that the food and non-alcoholic beverages index increased from 5.9% year on year to 6.9% year-on-year in January.
The latest data justifies the Reserve Bank’s 50 basis point rate hike in January to tame rising inflation. Rates were raised significantly despite concern from some sectors that it may further weaken economic growth.
Alcoholic beverages and tobacco increased from 6.6% year on year to 8.3% year on year in January.
The transport and recreation and culture indices rose sharply on a year-on-year basis.
Food and non-alcoholic beverages were also behind the rise in inflation during the month mainly due to higher fruit and vegetable prices.
In January‚ goods inflation rose by 6.5% year on year from 4.6% in December‚ while services inflation increased by 6% year on year from 5.7% in December.
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