South African inflation rose by less than expected in May, which analysts said reduced the likelihood of another central bank interest rate hike next month.
Headline consumer inflation quickened to 4.5% year on year from 4.0% in April. That was the highest reading since July 2024. Economists polled by Reuters had expected 4.7%.
The rise was mainly driven by fuel price increases linked to the Iran war.
Annual core inflation, which strips out volatile items like food and energy, was 3.8% in May, in line with forecasts.
Standard Bank economist Elna Moolman said the downside surprise largely emanated from food prices, which were flat in month-on-month terms in May.
