The inflation rate rose to 3.3% in October, according to Stats SA, and was broadly in line with the expectations of economists.

This is the highest level recorded in seven months, as the Covid-19 pandemic and resulting lockdown put a damper on spending and economic activity.

The slight uptick in inflation was primarily driven by inflation in food and non-alcoholic drinks, which showed an annual increase of 5.4%. The rise in food prices has been offset by a decline in the cost of fuel.

On a month-to-month basis prices rose by 0.3% from September to October, compared to 0.2% in the previous two months.

In a note released on Tuesday economists at FNB said that they expected overall inflation for 2020 to be 3.2%.

The South African Reserve Bank inflation target rate for the country is between three and six percent.


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