South Africa inflation rate surges to 13-year high

South Africa’s headline consumer inflation quickened more than forecast to 7.4% year on year in June, surging to a 13-year high, data from Statistics South Africa showed on Wednesday.

Analysts polled by Reuters had predicted a rise to 7.2% in annual terms from 6.5% in May.

The pickup in inflation comes the day before the South African Reserve Bank is due to announce an interest rate decision.

Analysts expect the Bank to announce a further 50 basis point rise in the repo rate, which would mark the fifth increase in a row.

On a month-on-month basis, consumer inflation was at 1.1% in June from 0.7% in the previous month, Stats SA figures showed.

Core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, rose to 4.4% year on year in June, from 4.1% previously. On a month-on-month basis, core inflation was at 0.6% from 0.2% in May.  — (c) 2022 Reuters