South Africa Inflation Eased for Second Straight Month in December

By Xavier Fontdegloria

South Africa's inflation edged down in December for a second consecutive month, but continued to exceed the central bank's target range.

The consumer price index rose 7.2% in December compared with a year earlier, down from the 7.4% increase recorded in November, according to data from Statistics South Africa released Wednesday.

Economists expected inflation to come in at 7.3%, according to a consensus from FactSet.

The main contributor to the annual inflation rate was food and nonalcoholic beverages, which increased 12.4% on year. Transport prices rose 13.9% on year, while housing and utilities prices climbed 4.1%, Statistics South Africa said.

The South African Reserve Bank raised its main repo rate in November by 75 basis points, to 7%. Economists expect the bank to continue increasing interest rates, albeit at a slower pace, as inflation gradually falls back to the central bank's target range of 3% to 6%.

Write to Xavier Fontdegloria at [e-mail]

(END) Dow Jones Newswires

01-18-23 0325ET