South Africa: Inflation eases in May
Consumer prices rose 0.2% in May from a month earlier, easing from April’s 0.8% jump. May’s reading was driven entirely by rising fuel costs, as prices across all other categories were flat following April’s VAT hikes. As such, core consumer prices—which exclude food and energy prices—were flat from a month earlier.
Inflation ticked down to 4.4% from 4.5% in April, coming in below analysts’ expectations of a 4.7% reading. May’s print showed the slowest rise in food costs in nearly five years, which helped offset the rand’s weakness. Core inflation also eased, dipping to 4.4% from 4.5%. Meanwhile, annual average inflation was stable from a month earlier at 4.6%.