South African inflation up

23 Jul, 2015

South Africa's annual inflation rate rose slightly to 4.7 percent in June, official data showed Wednesday, ahead of a central bank decision that could see interest rates increase for the first time in a year. The 0.1 percent rise in inflation from the previous month was largely driven by the housing and utilities sectors. Nedbank, one of the country's largest lenders, said the 4.7 percent figure was lower than market expectations of 5.0 percent.
It predicted inflation would "continue its upward trend this year" - citing higher food prices and a weaker rand dollar exchange rate. The Reserve Bank's target range is between 3.0 and 6.0 percent. The latest inflation figures came ahead of the Reserve Bank's monetary policy decision on Thursday.

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