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After four consecutive months of decline, annual consumer inflation edged upward in August, rising to 4.8% from 4.7% in July.
Statistics South Africa said however that the inflation rate for food and non-alcoholic beverages continued to cool, taking some of the heat off the headline rate.
However, Stats SA's, Patrick Kelley, said this cooling down was not enough to counteract the rise in fuel prices and increases in municipal tariffs.
"The monthly change in the consumer price index (CPI) was 0.3%, down from 0.9% in July. The housing & utilities and transport categories drove much of the 0.3% increase, each contributing 0.1 of a percentage point to the monthly rate," he said.
Statistics South Africa said annual inflation for food & NAB declined for a fifth straight month, softening from 9.9% in July to 8.0% in August. Except for fruit, all food and NAB categories recorded lower annual rates in August.
Other notable price changes in August include a 2.2% increase in the price of fuel between July and August, while restaurants and hotels recorded the second-highest annual inflation rate in August rising to 6.7% from 6.5%.
Meanwhile, First National Bank said CPI could come in at 5.5% on an adjusted forecast.
Senior economist, Koketso Mano, said it also expected the Monetary Policy Committee of the South African Reserve Bank to leave interest rates unchanged when it next meets.
