South Africa’s inflation dips below seven percent

Inflation in South Africa slowed for a third consecutive month in January, dipping below seven percent after hitting a 13-year peak last year, data showed Wednesday.

Consumer prices rose 6.9 percent last month compared to January 2022, after a year-on-year increase of 7.2 percent in December, the national statistics agency StatSA said.

Inflation around the world is easing after striking the highest levels in decades last year as Russia’s invasion of Ukraine drove up energy and food prices.

Inflation in South Africa reached 7.8 percent in July last year, its highest in 13 years.

Monetary chiefs in South Africa, the continent’s most industrialised economy, have been raising interest rates for more than a year to tame rising prices.

The latest hike, last month, took the benchmark rate to 7.25 percent, hitting the appetite for investment.

The central bank expects inflation to slow to 5.4 percent in 2023, compared to 6.9 percent last year