A woman uses a trolley as she shops at a grocery store in East London, in the Eastern Cape province, South Africa, July 7, 2022. REUTERS/Siphiwe Sibeko

JOHANNESBURG, June 21 (Reuters) – South African inflation fell to a 13-month low of 6.3% year-on-year in May, helped by smaller increases in food and fuel costs, data showed on Wednesday.

The slowdown from 6.8% in April was greater than forecast. Analysts polled by Reuters had expected a reading of 6.5%.

The latest figure takes inflation closer to the central bank’s 3%-6% target range, where inflation was last seen in April 2022.

The South African Reserve Bank (SARB) has raised interest rates 10 times in a row to try to bring inflation back to target. Its next policy meeting is in about a month’s time, in July.

Statistics South Africa figures showed consumer inflation was at 0.2% in May, versus analyst expectations of 0.4%.

Core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, was at 5.2% year on year in May, from 5.3% the previous month.

Capital Economics economist Jason Tuvey said Wednesday’s data reinforced the view that the SARB’s tightening cycle was over and that interest rates would be kept at 8.25% ZAREPO=ECI next month.

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Casey Delport, investment analyst at Anchor Capital, said inflation was beginning to show signs of abating but risks remained linked to the country’s power crisis.

(Reporting by Alexander Winning and Tannur Anders; Additional reporting by Bhargav Acharya; Editing by Promit Mukherjee and Mark Heinrich)