South African inflation picks up in January

A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko/File Photo
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JOHANNESBURG,- South Africa’s headline consumer inflation quickened to 5.3% year on year in January from 5.1% in December, opens new tab, data showed on Wednesday.

Key contributors to the annual inflation rate included food, housing, utilities and transport, according to a Statistics South Africa report.

At its last monetary policy meeting in January, the central bank said it wanted to see a clearer disinflation trend before cutting interest rates.

The South African Reserve Bank likes to see inflation around the mid-point of its 3% to 6% target range.

Core inflation (ZACPYY=ECI), opens new tab, which excludes food and fuel prices, accelerated in January to 4.7% in annual terms from 4.5% in December.

Reporting by Alexander Winning; Editing by Andrew Heavens