The increase in South Africa's consumer price index (CPI), which is used by the South African Reserve Bank (Sarb) for its inflation target, was up 5.9 percent year-on-year (y/y) in October from 6.1 percent y/y in September, Statistics South Africa (Stats SA) said on Wednesday.

CPI was at 0.0 percent month-on-month (m/m) after increasing 0.4 percent in September.

It was expected to have receded to 5.9 percent year-on-year (y/y), according to a survey of 13 leading economists by I-Net Bridge.

Forecasts among the economists ranged from 5.7 percent to 6.1 percent. Only two economists forecast it above the upper 6 percent limit.

Economists.co.za director Mike Schusslerat said: "It's better than what I had expected and is great news. I think we are ending the bottoming out of inflation, and will head back up from here on.

"It's been a week of good news and is what the economy needed."

Efficient Group economist Freddie Mitchell said: "At 5.9 percent we are in the inflation band, so that's good news. But just how long we are going to stay there is dependent on electricity hikes next year and also when consumer demand starts returning to the market, what effects that will have on consumer prices in the future. But it's good news for now.