Consumer inflation eases to 4.9% after 30-month high of 5.2%

South Africa’s headline consumer inflation slowed to 4.1 percent in September, down from 4,3 percent in August as shown by the consumer price index. African News Agency (ANA)

South Africa’s headline consumer inflation slowed to 4.1 percent in September, down from 4,3 percent in August as shown by the consumer price index. African News Agency (ANA)

Published Jul 21, 2021

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Annual consumer price inflation (CPI) eased to 4.9 percent year-on-year in June after recording a 30-month high of 5.2 percent in May, Statistics South Africa (Stats SA) said today.

Stats SA said the decline in consumer inflation was driven by the food and non-alcoholic beverages as prices remained unchanged at 6.7 percent in this category.

However, Stats SA said there was an average price increase of 0.2 percent between May and June.

“The three fruits groups have registered the highest annual increases in June, with oils and fats, meat, and sugar-sweetened desserts,” StatsSA said.

“Oils and fats have seen steady increase in prices since February 2019. Cooking oil products in particular have recorded sharp increases.

“Meat inflation continued to accelerate too, reaching an annual rate of 8.6 percent from a 12-month low of 4.1 percent in August 2020.

“The sugar-sweetened dessert index rose by an annual rate of 7.2 percent in June. this category has seen price rises slowing from a high of 9.7 percent in October 2020.”

Stats SA said alcoholic beverages and tobacco eased to 5.3 percent in June from 5.8 percent the previous month, while clothing and footwear also eased to 1.7 percent from 1.8 percent.

Cost also increased at a softer pace for transport at 12.3 percent in June compared to 15.3 percent in May, and prices for miscellaneous goods and services remained unchanged at 4.1 percent.

Housing and utilities increased by 2.6 percent year-on-year from 2.3 percent in May, while prices for household contents and services rose to 1.3 percent from 0.9 percent.

Stats SA said the annual inflation rate for goods was 7.1 percent, down from 8 percent in May, and for services, it was 2.9 percent, up from 2.7 percent during the same period.

The monthly increase in the CPI was 0.2 percent between May and June.

BUSINESS REPORT ONLINE