JOHANNESBURG, April 20 (Xinhua) -- South Africa's consumer prices index (CPI) decelerated from seven percent in February to 6.3 percent in March, according to figures released by the Statistics SA (Stats SA) on Wednesday.
"On average, prices increased by 0.8 percent between February 2016 and March 2016," Stats SA said.
The deceleration in the consumer price index was attributed to the five percent cut in the petrol price, according to Rand Merchant Bank analyst John Cairns.
The inflation is also expected to "show a sharp, although temporary, moderation," he told Xinhua.
However, experts are concerned that the hard hitting drought will push inflation up above the three to six percent target set by the SA Reserve Bank.
"The inflation will be above the Reserve Bank for some time," an economist, Wandile Sihlobo of GrainSA, told Xinhua on Wednesday.
The Reserve Bank recently said it does not expect CPI to fall back under six percent before late next year.
Today's inflation figure, still above the central bank's target, gives indication the monetary policy committee may raise interest rates further at its next vote on May 19.
In March, the consumer price index for goods rose by 6.9 percent year on year, down from 7.9 percent in February, and the CPI for services increased by 5.7 percent, down from 6.1percent the month earlier, Stats SA said. Enditem
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