BusinessLive reports that consumer inflation edged up as expected in December, as a hefty fuel price increase took a chunk out of consumers’ wallets but was counterbalanced by lower inflation elsewhere, including food.  

The consumer price index (CPI) rose 4.7% in December 2017 compared with December 2016, Statistics SA said on Wednesday.  That follows a 4.6% year-on-year increase in November.  That meant inflation for all of last year averaged 5.3%, down significantly from 6.3% in 2016.  Investec’s Kamilla Kaplan expects consumer inflation to average 4.8% in 2018 — and with an economy in desperate need of some impetus, all eyes are on whether the Reserve Bank will cut interest rates at its March meeting.  One of the main factors in SA’s tamer inflation rate has been a sharp fall-off in food inflation.  Food price increases ran to double digits for most of 2016, but since August 2017 they have remained comfortably below 6%.  Food inflation in December came in at 4.9% year-on-year.  Fuel prices have been more volatile.

• Read this report by Tammy Foyn in full at BusinessLive

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