Mounting Pressures Threaten South Africa Inflation Slowdown
- Headline inflation slowed to seven-month low of 7.2% in Dec.
- Electricity price increases, blackouts add to inflation risks
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South African inflation slowed to a seven-month low in December, though mounting price pressures including a sharp increase in electricity costs may force the central bank to keep interest rates higher for longer.
The headline consumer-price index rose 7.2% from a year earlier, compared with 7.4% November, Pretoria-based Statistics South Africa said Wednesday in a statement on its website. The median of 15 estimates in a Bloomberg survey of economists was 7.3%.