Cape Town – Inflation in South Africa increased slightly from 4.7% in July to 4.8% in August, ending a four-month trend of decreasing inflation.
This uptick was primarily attributed to rising fuel prices and municipal tariffs, offsetting the lower costs of food and non-alcoholic beverages.
According to Statistics SA, the Consumer Price Index (CPI) showed a monthly change of 0.3%, down from 0.9% in July. Annual inflation for food and non-alcoholic beverages decreased for the fifth consecutive month, dropping from 9.9% in July to 8.0% in August. However, fruit was an exception to this trend.
The category of bread and cereals saw a decline in annual inflation from 13.1% in July to 9.9% in August, as several products became cheaper. Notably, rice prices increased by 3.4% compared to July.
Meat inflation also eased, with the annual rate decreasing from 5.1% in July to 3.6% in August. Most beef and chicken products saw lower prices in August, except for chicken giblets and beef extract.
Annual consumer price #inflation was 4,8% in August, slightly up from 4,7% in July. The #CPI increased by 0,3% m/m in August.
Read more here: https://t.co/8vdrZvT6hX #StatsSA pic.twitter.com/aophc5pxIU
— Stats SA (@StatsSA) September 20, 2023
Milk, eggs, and cheese followed a similar pattern, with annual inflation dropping from 14.4% in July to 11.9% in August, driven by lower prices for various products except for some treats like condensed milk and custard.
Sugar, sweets, and desserts had the highest annual inflation rate at 18.5%, although it was slightly lower than July’s 18.7%. Prices for jam and chocolate slabs decreased in August, while brown sugar, white sugar, and ice cream continued to increase.
Annual inflation for alcoholic beverages also slowed to 6.9% from 7.8% in July, with beer and wine prices declining slightly in August.
Additionally, municipal rates played a role in inflation, with electricity tariffs, water charges, and property rates all increasing in 2023.
Fuel prices increased by 2.2% between July and August, affecting the overall inflation rate. Restaurants and hotels also saw inflationary increases, with restaurant inflation at 6.7% and hotel room prices up by 5.9% in the 12 months to August.
Various products experienced price changes, with some becoming more expensive over the past year and others seeing increases from July to August. Notable price increases included onions, potatoes, and cauliflower, among others.
Overall, the slight rise in inflation in August was influenced by a combination of factors, including fuel prices, municipal tariffs, and varying price changes in different product categories.
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Compiled by Betha Madhomu
