Stats SABusinessLive reports that inflation, as measured by the annual change in the consumer price index (CPI), accelerated less than expected to 4.5% in April from 3.8% in March.  

Economists had expected inflation to heat up as the various tax and levy increases introduced in the 2018 budget took effect on 1 April.  At 4.5%, April’s inflation came in lower than the economist’s consensus of 4.7% and placed inflation exactly in the middle of the Reserve Bank’s 3%-6% target range.  The 72c/litre increase in the price of petrol in April contributed to the fuel component of CPI showing 9% annual inflation.  This matched a 9% inflation in meat prices.  Overall food inflation was 3.7%, with fruit prices falling 8.2%, and bread and cereal prices falling 3.7% over the year.


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