Consumer inflation has gone up, but slightly below market expectations, following increases in the fuel price.

South Africa's Consumer Price Index (CPI) annual inflation rate increased to 4.8% in August from 4.6% in July, Stats SA announced on Wednesday.

"On average, prices increased by 0.1% between July 2017 and August 2017," it said.

The market was expecting a "fuel price-induced jump to 4.9%", Rand Merchant Bank analyst Gordon Kerr said in an investor note on Wednesday.

The price of petrol increased by 67 cents a litre in September and by 19c in August.

The CPI is still within the SA Reserve Bank's 3% to 6% target band, TreasuryOne said after the CPI release. "There is a good chance the SARB may look to cut interest rates tomorrow by another 25 basis points. The USD/ZAR is trading a little better this morning at R13.27."

StatsSA said that the rise in inflation was impacted by the following:

• Food and non-alcoholic beverages decreased from 1.1 percentage points in July to 1.0 percentage point in August. The index increased by 5.7% year-on-year.
• Alcoholic beverages and tobacco increased from 0.2 of a percentage point in July to 0.3 of a percentage point in August. The index increased by 4.3% year-on-year.
• Transport increased from 0.1 of a percentage point in July to 0.6 of a percentage point in August. The index increased by 3.9% year-on-year.
• Recreation and culture decreased from 0.2 of a percentage point in July to 0.1 of a percentage point in August. The index increased by 2.4% year-on-year.
• Miscellaneous goods and services decreased from 1.2 percentage points in July to 1.1 percentage points in August. The index increased by 7.5% year-on-year.