Inflation in South Africa accelerated for the third month in a row amid rising price pressures.

The main consumer price index rose 7.8% year-on-year, up from 7.4% in June, Statistics South Africa said in a statement on its website on Wednesday. This matched the median estimate of 14 economists. It remains at levels last seen during the global financial crisis, and is now the fastest rate of inflation under Lesethji Kganyaga’s tenure as central bank governor.

Core inflation, which excludes food, soft drinks, fuel and electricity prices, accelerated to 4.6%, beating the midpoint of the central bank’s target range of 3-6% for the first time in more than four years. The Reserve Bank’s Monetary Policy Committee prefers to anchor inflation expectations at around 4.5%.

Kganyaga told lawmakers that headline inflation may be nearing its peak, although rising underlying price pressures could see the MPC continue its cycle of aggressive interest rate hikes.

© 2022 Bloomberg

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