# Inflation breaches upper level of Bank’s target range

> Statistics South Africa reported that May consumer inflation accelerated to 6.5%, above the 6.2% market forecast and above the Reserve Bank's 6% upper target limit. Food, housing, and transport were the main contributors, and fuel remained a major driver. Core inflation rose to 4.1%, its highest since August 2019.

- Date: 2022-06-22 · published 2022-06-22T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/41270-inflation-breaches-upper-level-of-bank-s-target-range
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Inflation above target makes further South African Reserve Bank rate hikes more likely, which can support the rand. Higher food and fuel costs also raise domestic feed and transport costs.

## Sources

- businessday.co.za: https://www.businessday.co.za/bd/economy/2022-06-22-inflation-breaches-upper-level-of-banks-target-range/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.