South Africa’s Inflation Hits New 13 Year High

South Africa has recorded a new 13 year high inflation in July, pushed mainly by surging prices for food, transport and electricity, official data showed on Wednesday.

Consumer prices rose at an annual rate of 7.8 percent in July, up from 7.4 percent in June, the national statistics agency StatsSA said in a statement.

The publication of the latest statistics coincided with protests in major cities over the worsening economic conditions, which have been particularly crushing for the poorest in the continent’s most industrialised country.

Strikers led by South Africa’s two largest trade unions called for government action to combat rising poverty and the cost of living in the world’s most unequal country.

While the new inflation figure is bad news for consumers, economists see the country likely reaching a tipping point and believe inflation could ease in the coming months.

This “is likely the peak in the current inflation cycle,” according to Investec bank chief economist Annabel Bishop.

“Inflation will be lower this time next year,” said Dawie Roodt, an economist with the financial services firm Efficient Group.