South Africa’s Consumer Price Inflation Remains Steady at 3.2% in February

Consumer price inflation in South Africa remained at 3.2% in February, driven largely by increases in housing, utilities, and food items. Significant inflationary trends were observed in other categories, while certain essential goods also indicated varied price changes. Notably, the rates for medical services and hot beverages increased sharply, signaling ongoing pressures in these areas.

Consumer price inflation in South Africa remained consistent at 3.2% in February, maintaining the same rate as January, according to the latest figures from Statistics South Africa. The key drivers of this annual inflation included housing and utilities, which increased by 4.4% and contributed 1.0 percentage point to the inflation rate, alongside food and non-alcoholic beverages, which rose by 2.8%, contributing 0.5 percentage point.

Additionally, sectors such as restaurants and accommodation services also influenced the overall inflation rates. In contrast, categories like recreation, sport and culture, along with alcoholic beverages, tobacco, and communication, exhibited rising annual inflation rates compared to previous months.

“Inflation cooled for several product categories, most notably personal care and miscellaneous services, health, restaurants and accommodation, furnishings, household equipment and routine maintenance and transport,” stated Lekau Ranoto, director of CPI Operations at Stats SA.

Notably, the annual rate for food and non-alcoholic beverages increased to 2.8% in February from 2.3% in January. Categories such as fruit, nuts, vegetables, hot beverages, seafood, meat, and cereals experienced significant price hikes, while cold beverages, dairy products, oils and fats, as well as sugar confectionery and desserts saw slower price increases.

Ranoto also reported that inflation for maize meal, a dietary staple in South African households, reached a 17-month peak, with inflation for samp hitting a 19-month high in February. This escalation in prices is attributed to inflationary pressures in the maize farming and manufacturing sectors according to recent producer price index data.

The average consumer prices for meat did not fluctuate in February when compared to January, resulting in no monthly change and maintaining an annual rate of 0%. Conversely, inflation for hot beverages accelerated, with the annual change in the price index for hot beverages rising to 14.6% in February, up from 13.7% in January.

Furthermore, Stats SA reported a 10.5% increase in medical-aid premiums this year, with health services rising by 6.1% compared to a 5% increase observed last year.

In summary, South Africa’s consumer price inflation has remained steady at 3.2% for February, with housing, utilities, and food significantly contributing to this stability. Certain categories, including recreation and health services, are witnessing increased inflation rates. Vital trends show rising prices in key food items, especially maize meal, highlighting ongoing inflationary pressures in the agricultural sector. Overall, these dynamics point to varied inflationary trends across different sectors and necessities.

Original Source: www.zawya.com