South African Inflation Unexpectedly Quickens to 8.8%

(Bloomberg) — South Africa’s inflation rate unexpectedly rose in January, reaching its highest in almost five years and keeping pressure on the central bank to leave interest rates at a four-year high.

CPIX inflation, which excludes mortgage costs, accelerated to an annual 8.8 percent from 8.6 percent in December, Pretoria-based Statistics South Africa said. Inflation was expected to slow to 8.4 percent, according to the median estimate of 16 economists surveyed by Bloomberg. Prices rose 1.2 percent in the month.


… The price of white corn, a staple in South Africa, climbed 8.9 percent in the second half of last year, boosted by drought and higher international grain prices.

Inflation may accelerate after the government raised gasoline costs by 2.3 percent in February and plans to increase fuel levies and other taxes on alcohol and cigarettes in March. Crude oil surged 5.5 percent in New York this year, and reached a record $102.08 a barrel today.

Bloomberg