Year-on-year consumer price inflation less mortgage costs (CPIX) accelerated to four percent last month from 3.7 percent in November, Statistics SA reported on Wednesday. The increase has dampened speculation that the Reserve Bank will cut interest rates this year.

The figure was ascribed mainly to annual increases in the prices indices for food, transport, medical care, housing less mortgage costs, and education.

The annual rate food price increases was 4.3 percent last month from 2.4 percent in November.

Annual CPIX inflation for the whole of last year slowed to 3.9 percent from 4.3 percent in 2004.

Headline inflation (consumer price index) last month stood at 3.6 percent, compared to 3.4 percent in November.

The annual figure for last year was 3.4 percent, up from 1.4 percent in 2004, Stats SA said in a statement in Pretoria.

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SA's official statistics body produces a number of key indicators, including monthly inflation and quarterly GDP figures, unemployment and population counts.

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