South Africa’s annual inflation rate cooled in May, continuing April’s downward trend.
StatsSA announced today that annual consumer price inflation (CPI) was 6.3% in May 2023, down from the 6.8% recorded in April 2023. This is the lowest inflation the country has seen since April 2022.
However, the inflation rate remains outside the South African Reserve Bank’s target range of 3% to 6%.
According to StatsSA, the consumer price index increased by 0.2% in May 2023.
The main contributors to the 6.3% annual inflation rate were:
- Food and non-alcoholic beverages increased by 11.8% year-on-year and contributed 2.1 percentage
- Housing and utilities increased by 4.0% year-on-year and contributed 1.0 percentage point;
- Transport increased by 7.0% year-on-year and contributed 1.0 percentage point; and
- Miscellaneous goods and services increased by 6.3% year-on-year and contributed 0.9 of a percentage
In May, the annual inflation rate of goods was 8.0%, down from 9.0% in April. For services, it was 4.7%, unchanged from 4.7% in April.