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Sharp drop in consumer inflation

| Economic factors

South Africa's consumer price inflation came out at 4.4% in January 2018, in line with expectations and down from 4.7% in December 2017. This is mainly due to a drop in the fuel price.

The consumer price index (CPI) increased by 0.3% month-on-month (m/m) in January 2018.

Transport decreased from 0.9 of a percentage point in December to 0.6 of a percentage point in January. The index increased by 4.4% year-on-year.

Food and non-alcoholic beverages contributed 0.2 of a percentage point in January. The index increased by 1.3% m/m. 

Transport contributed -0.1 of a percentage point in January. The index decreased by 0.4% m/m.

Miscellaneous goods and services contributed 0.1 of a percentage point in January. The index increased by 0.7% m/m.

In January the CPI for goods increased by 3.7% year-on-year (y/y), down from 4.1% in December. The CPI for services increased by 5,1% y/y, down from 5.3 % in December.

Provincial annual inflation rates ranged from 2.9% in North West to 5.2% in Western Cape.

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