Inflation Expectations 2014Q2.pdf - 0.4 Mb
Annual CPI inflation stable at 6.6% in June
After accelerating for five consecutive months, headline consumer price inflation remained flat at 6.6% year-on-year (y-o-y) in June. This was slightly below market expectations. On a monthly basis, prices increased by 0.3%. The main contributor to the monthly figure was the housing and utilities category, which added 0.2 percentage points (%pts). Both actual and owner’s equivalent rentals were surveyed during June, with the former rising by 1.5% month-on-month (m-o-m) and the latter by 1.3% m-o-m. Monthly food price inflation continued to moderate, although at 9.2% yo-y, annual inflation in this category remains elevated. Core inflation (which strips out food, petrol and energy prices) increased marginally to 5.6% y-o-y from 5.5% in May. There is some evidence of increased pass-through from the weaker rand, with prices of durable and semi-durable goods with high import content increasing over recent months.
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