US gasoline prices have raised 10% mom in May.
"After a small seasonal adjustment, the SA index is expected to show a 9.8 percent growth. Core CPI expected to increase at 0.2% as food and energy are likely to boost headline CPI index 0.6% higher", according to Societe Generale.
The increase in household formations and drop in the rental vacancy rate will cause the shelter inflation to move upward. Higher energy price may accelerate the public transportation costs.
"The yoy headline inflation will rise from -0.2% to 0%, and core inflation remains at 1.8 percent. Further, the, headline CPI to rise at 1.7% by December and 2.5 % by march 2016, whereas, core inflation will rise at 2.3% and 2.5% for the respective period", estimates Societe Generale.
