BL Premium reports that consumer inflation fell even more in July, reaching the lowest level in two years and moving further within the Reserve Bank’s 3%-6% target range.

Stats SA on Tuesday said headline inflation moderated to 4.7% in July, from June’s 5.4%. The annual core inflation, which excludes prices of food, nonalcoholic beverages, fuel and energy, reached a 10-month low of 4.7% in July 2023, from 5% in the previous month. Absa economist Miyelani Maluleke noted that while the 15.1% rise in electricity tariff kicked in at municipalities from July and was reflected in the data, this was offset by further moderation in fuel and food inflation. Stats SA said the transport category, previously a major upward driver of inflation, helped to pull overall inflation down in July. Other factors contributing to the moderation of the headline rate were food and non-alcoholic beverages, which eased to 9.9% in July from June’s 11%, while inflation for bread and cereals slowed to 13.1% from 15.5%. Capital Economics’ Jason Tuvey said the big falls in inflation were probably over and the headline rate was likely to hover around 4.8%-5% year-on-year for the rest of 2023.

• Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only)
• Read too, Inflation slows to lowest level in two years, at Fin24

Get other news reports at the SA Labour News home page