South Africa inflation eases to 5.8 percent

South Africa’s headline inflation edged down in November, as lower oil prices contained costs, official figures released Wednesday showed.

The rate dropped to 5.8 percent, from 5.9 percent in October, remaining within the central bank’s target band of between three and six percent.

Statistics South Africa said there had been an annual rate decrease of 4.2 percent in the transport index in November, down from 4.8 percent in October.

Economists have forecast that inflation is likely to remain within the ceiling target in the next months, reducing the probability of an interest hike in January.

The main “repo rate” is currently at 5.75 percent.

“Inflation is likely to remain relatively contained in the coming months on the back of lower commodity, especially oil prices,” said a statement issued by Nedbank economists.

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