According to analysts’ predictions, South Africa’s headline consumer inflation decreased to 7.2% year over year in December from 7.4% in November, according to statistics agency data released on Wednesday.
In Africa’s most industrialized country, price pressures have been steadily reducing after inflation reached a 13-year high of 7.8% year over year in July.
Since its most recent tightening cycle started in November 2021, the South African Reserve Bank has increased interest rates to combat inflation at each of its previous seven monetary policy meetings.
The central bank seeks inflation of between 3% and 6%, and its next rate-setting decision (ZAREPO=ECI) is due on January 26.
Consumer inflation was 0.4% in December compared to 0.3% in November on a month-over-month basis. Reuters polled analysts, and they predicted that it will remain at 0.3%.
Core inflation, which does not include prices for food, non-alcoholic beverages, fuel, and energy, decreased from 5.0% in November to 4.9% in December.
Core inflation was 0.2% in December compared to 0.1% in November on a month-over-month basis.