News24.com | JUST IN | October inflation surprises with jump to 7.6%

Consumer inflation increased to 7.6% for October.

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October inflation picked up to 7.6%, from 7.5% recorded in the previous month. 

Economists had expected inflation to ease to 7.4%.

Stats SA released the figures on Wednesday, which show a 0.4% month-on-month increase in October. 

The main contributors to inflation were food and non-alcoholic beverages, which increased 12% on a year-on-year basis and transport, which was up 17.1%.

Housing and utility prices were up 4.3% on a year-on-year basis, and also contributed to the increase.

Economists expect the Reserve Bank to hike interest rates by 75 basis points at its next meeting on Thursday - given risks around the inflation outlook and a "softer" rand exchange rate, the Bureau for Economic Research said in its weekly overview.

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