South Africa’s transport sector was the largest contributor to inflation in the country, the Bureau for Economic Research says in its latest weekly assessment.
With the headline Consumer Price Index (CPI) measured at 5% year-on-year (y-o-y) in October, it marks the sixth consecutive month that inflation has been above 4.5%, the Bureau says.
This is also the midpoint of the Reserve Bank’s target, hence last week’s 25 basis point increase in the repo rate.
According to the Bureau: “The largest contributor to the annual inflation figure was transport, which climbed 10.9% y-o-y, adding 1.5% pts. This was mainly attributable to fuel prices which increased by 23.1% y-o-y, up from 19.9% y-o-y in September.”