South Africa Consumer Price Growth Slows in July as Inflation Eases

South African consumer prices grew at a slower rate in July than in June, the country's statistics office said on Wednesday, affirming a trend of easing inflation and raising the likelihood of further interest-rate cuts.

Prices increased by 4.6% in July compared with a year earlier, while in June, annual inflation was 5.1%.

Prices for food and beverages; housing and utilities; and transport all increased at a slower rate in July than in June, the statistics office said.

The South African Reserve Bank in July cut its main repo rate to 6.75% from 7%--its first rate decrease since 2012.

With the economy expected to grow just 0.5% this year, the continuing fall in inflation makes it more likely that the bank will lower rates again this year, analysts say.

Write to Gabriele Steinhauser at

(END) Dow Jones Newswires

August 23, 2017 05:34 ET (09:34 GMT)