South African consumer inflation accelerated more than expected in May, boosting chances the Reserve Bank might start lifting interest rates before the end of the year rather than early in 2012.
Government bond yields retreated, with the yield on the four-year issue rising to 7.49 percent from 7.445 percent prior to the release of the CPI numbers at 0800 GMT.
May inflation came in at 4.6 percent year-on-year from 4.2 percent in April, Statistics South Africa said, and also quickened to 0.5 percent month-on-month from 0.3 percent, the main drivers being accelerating food and fuel prices.
22 June 2011
Rate Hikes Sooner Rather Than Later?
Rate increases loom as inflation quickens