Year-on-year consumer inflation less mortgage costs (CPIX) slowed to 3.5 percent last month from 3.9 percent in May, Statistics SA reported on Wednesday, adding to chances of an interest rate cut later in the year.

It ascribed the latest figure partly to annual increases in price indices for housing excluding mortgage rates, and in medical care and health expenses.

Other contributors were annual increases in the cost of transport, education, food and household operation.

Headline inflation (CPI) came in at 2.8 percent last month — down from 3.3 percent in May.

Main contributors included annual increases in the price indices for medical care and health expenses, transport, housing, food, household operation, and education.

The annual rate of increase in food prices slowed to 1.3 percent last month from 1.4 percent in May, Stats SA said in a statement in Pretoria.

Sapa

SA economy South Africa is the economic powerhouse of Africa, with a gross domestic product four times that of its southern African neighbours and comprising 25% of the entire continent's GDP.

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