Financial News: S. Africa Inflation Eases More Than Expected, Retail

S. Africa Inflation Eases More Than Expected, Retail Sales Growth Unexpectedly Slows

(RTTNews) - South Africa's consumer price inflation slowed faster-than-expected to its lowest in three months in July and retail sales growth eased unexpectedly in June, data released by Statistics South Africa showed on Wednesday.

The consumer price index rose 4.3 percent year-on-year in July following a 5.0 percent increase in June. Economists had forecast an inflation rate of 4.5 percent. Annual inflation rate was the lowest since April, when it was 4.0 percent.

Meanwhile, core inflation that excludes prices of food and non-alcoholic beverages, fuel and energy rose to 4.2 percent from 4.1 percent.

The CPI edged up 0.2 percent from the previous month.

The annual inflation was mainly led by a 5.2 percent increase in prices in the housing and utilities group, an 8.9 percent jump in transport costs and a 5.7 percent increase in the insurance and financial services group.

Goods inflation slowed sharply to 3.4 percent from 4.8 percent. Services inflation eased modestly to 5.0 percent from 5.2 percent.

Separate data from the statistical office revealed that the pace of growth in retail sales slowed sharply in June, defying expectations for a modest improvement.

Retail sales grew a non-adjusted 1.6 percent year-on-year following a 2.2 percent increase in May. Economists had forecast 2.3 percent gain.

The biggest positive contributors to the 1.6 percent increase came from all 'other' retailers and the general dealers' groups.

Sales decreased a seasonally adjusted 0.6 percent from May, when they were flat. That was the first decline in four months.

In the second quarter, retail sales grew 1.7 percent year-on-year, the statistical office said.

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