Rand spikes as consumer inflation slows sharply on food prices
By Pericles Anetos - May 24th 2017, 12:25
A slight slowdown had been expected, but the CPI data were better than forecasts, thanks also to fuel price cuts.
Consumer inflation slowed much more than expected in April.
The consumer price index (CPI) rose 5.3% in April from a year earlier, Statistics SA said on Wednesday - slowing from 6.1% in March 2017.
The rand briefly ducked below R13/$ on the news, hitting R12.9884 against the greenback shortly after the release of the data.
The CPI measures changes in the price of consumer goods and services purchased by households in urban areas. April's numbers were better than expected. Trading Economics and Investec had both forecast April CPI inflation to drop to 5.7%.
The consumer price index increased by 0.1% month on month in April.Kamilla Kaplan of Investec has pointed also to cheaper fuel as contributing to slowing inflation.
Petrol and diesel prices were reduced by 24c per litre and 10c per litre, respectively, in April.
Food inflation, meanwhile, continued to slow in April, as it has for most of this year. The pace of the slowdown picked up, though, with prices for food rising 6.6% from a year earlier while prices for food and alcoholic beverages rose 6.7% - from an increase of 8.7% for both categories in March. © BusinessLIVE MMXVII
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