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South Africa inflation rises slightly to 2.8% y/y in April

Consumers

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21st May 2025

By: Reuters

  

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South Africa's inflation rose marginally in April due to higher food prices but remained below the central bank's target range, statistics agency data showed on Wednesday.

Headline consumer inflation stood at 2.8% year-on-year last month compared with 2.7% in March, while in month-on-month terms, inflation was at 0.3% in April from 0.4% in March.

Economists polled by Reuters had forecast annual inflation would remain steady at 2.7%, below the central bank's 3% to 6% target range.

South African Reserve Bank Governor Lesetja Kganyago has for years stressed his preference for a lower inflation target, saying it is needed to make the economy more competitive.

The next monetary policy announcement by the central bank is scheduled for May 29.

It kept its main lending rate unchanged in March after three consecutive cuts, citing risks from US President Donald Trump's global trade war and local budget disagreements.

Annual inflation for food and non-alcoholic beverages increased to 4.0% in April, the highest annual rate since September last year, Statistics South Africa said.

Edited by Reuters

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