<\/p>\n
South African annual inflation accelerated to the highest level in 20 months in April, driven by sharp increases in local pump prices stemming from the Iran war.<\/p>\n
Consumer prices rose 4% compared with 3.1% in March, Pretoria-based Statistics South Africa said in a statement on its website on Wednesday. That matched the median estimate of 17 economists in a Bloomberg survey.<\/p>\n
The data is the first to capture the steepest surge in fuel costs since inflation targeting was introduced in 2000. The central bank targets inflation at 3%.<\/p>\n
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Oil holds decline as traders weigh Trump\u2019s latest Iran threats
SA set for rate hike as war fuels inflation
Trump threatens Iran with \u2018big hit\u2019 if there\u2019s no deal soon<\/p>\n
The price of Brent crude has climbed around 50% since the US and Israel attacked Iran in late February, effectively closing the Strait of Hormuz, a key waterway for about a fifth of the world\u2019s seaborne oil and liquefied natural gas. The jump will also impact May inflation.<\/p>\n
Economists polled by Bloomberg ahead of the release expect the central bank\u2019s monetary policy committee to raise interest rates by 25 basis points to 7% when it announces its decision on May 28 to steer inflation back to target. That would mark the first rate increase in three years.<\/p>\n
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Governor Lesetja Kganyago said earlier this month that although the MPC cannot do much about higher inflation right now, it is committed to getting it back to 3%, \u201cjust where we had it before the shock hit.\u201d<\/p>\n
Countries around the world are grappling with inflation shocks triggered by the conflict, rolling out measures from fuel rationing to tax cuts and price controls.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n
#Inflation #hits #fuel #shock #bites<\/p>\n","protected":false},"excerpt":{"rendered":"
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