Inflation rate in South Africa slows unexpectedly

South Africa’s consumer price inflation slowed unexpectedly in May, though marginally, figures from Statistics South Africa showed Wednesday.

Inflation was expected to rise to 4.6 percent on the implementation of a VAT hike implemented in April, but, consumer prices rose 4.4 percent year-over-year in May, just below the 4.5 percent climb in April.

Prices of food and non-alcoholic beverages increased 3.4 percent annually and transport costs grew by 5.0 percent.

On a monthly basis, consumer prices edged up 0.2 percent from April, when it gained by 0.8 percent. That was in line with economists’ expectations.