The Consumer Price Index rose 9,2 per cent from May 2001 to May 2002, Statistics SA said on Tuesday.
The Consumer Price Index (CPIX) rose 9,2 per cent from May 2001 to May 2002, Statistics SA said on Tuesday.
The main contributors to the higher CPI and CPIX were the higher prices of food, housing, transport, and medical care and health.
This was partly countered by a decrease in the prices of clothing and footwear.
The figure is in line with expectations, but more than the Reserve Bank’s target of between three and six per cent. It is unlikely this target will be met this year.
However, economists do not expect the figure to force the Reserve Bank to raise rates again this year.
Market analysts seem to agree that inflation will peak towards the end of the year, and then start to move lower. This would leave some room for the Reserve Bank to move interest rates lower next year.
The CPIX figures follow on the release of a negative producer price index (PPI) figure or the year to April, which went up to 14,8 per cent.
It was the highest rate of annual increase since December 1989. The PPI was quoted at 14,1 per cent in March. This played a major part in the interest rate increasing this month.