South Africa Inflation Rises to 4.4%, Below Forecast

South Africa’s annual inflation rose modestly to 4.4% in August from 4.3% in July, slightly below expectations, while consumer prices were unchanged month to month. Housing and utilities, transport, and insurance and financial services were the largest contributors to the annual rate. Transport inflation remained elevated at 8.8% despite monthly declines in petrol and overall fuel prices, which were still substantially higher than a year earlier. Food and non-alcoholic beverage inflation accelerated for the first time in nine months but remained relatively low at 1.1%, while core inflation eased to 4.1%. The data was unlikely to materially affect the South African Reserve Bank’s interest-rate decision, with inflation expectations moderating and policymakers focused on the outlook over the coming quarters.