Inflation slows significantly ahead of repo announcement
Annual consumer inflation
slowed to 5,4% in June, down from 6,3% in May.
This is the lowest level in 20 months, and also sees inflation return to the Reserve Bank's target range of between 3 and 6%.
Stats SA's Patrick Kelly said it's the largest decline since May 2020.
He says of the 12 categories covered by the CPI - six saw a drop in annual inflation in June.
"One remained unchanged and five recorded increases. Annual inflation for food and non-alcoholic beverages slowed for the third successive month to 11% from 11.8% in May."
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Kelly says most food groups showed lower inflation rates in June, with the exception of vegetables, fruit, sugar, sweets, and desserts.
Housing rent has also shown an increase - according to a recent quarterly survey.
"Actual rents recorded an annual increase of 2,7%, slightly higher than March’s print of 2,5%. The annual rate for imputed rents was 2,9%, up from 2,7% in March."
The Reserve Bank's Monetary Policy Committee is due to make a repo rate announcement on Thursday.
