CAPE TOWN: South Africa’s average inflation rate rose to 6.1 percent in 2014, up from an average of 5.7 percent in 2013 and above the central bank’s target, official statistics showed Wednesday.
The increase came after the December inflation rate dipped to 5.3 percent – its lowest since November 2013.
Consumer prices peaked at 6.6 percent in May and June before beginning a slow decline.Since September’s 5.9 percent, inflation has stayed within the central bank’s target of between three and six percent.
Statistics South Africa said the transport index decreased by 1.6 percent between November and December, largely thanks to lower petrol prices, while foodstuffs also saw a decrease.
Economists had forecast that if inflation stayed within the target in the last months of 2014, it would reduce the probability of an interest rate hike in January.
