South Africa’s inflation accelerates to 8-month high in October on rising food prices

South Africa’s inflation accelerated to 6.4 percent in October from 6.1 percent a month earlier, Statistics South Africa said in a report released Wednesday. Inflation was now at its highest since February, an 8-month high. The reading is beyond the central bank's target range of a 3 percent to 6 percent price increase.

The worst drought in more than a century which hit the nation, pushed food prices up 12 percent from a year earlier and 0.9 percent from the month before, according to the statistics office. Core inflation (which excludes food, non-alcoholic beverages, energy and gasoline) quickened to 5.7 percent from 5.6 percent.

At its September meeting, the central bank said that it might be close to reaching the end of its tightening cycle, but warned it was concerned inflation was still near the upper end of its target range.

Surge in inflation ahead of the South African Reserve Bank's November rate decision suggests that Governor Lesetja Kganyago will probably keep the benchmark repurchase rate unchanged when he announces the MPC’s decision on borrowing costs Thursday.