Inflation dips below 4.5% for the first time since April 2021

Inflation

Cape Town — Inflation has softened for the third consecutive month as the figure hit 4.4%, dipping below the 4.5% mark for the first time since April 2021.

Inflation stood at 4.6% in July when it dipped below 5% for the first time since July 2021, showing an improvement across many sectors including transport, housing and restaurants and hotels, StatsSA reported.

Transport-related products recorded softer annual rates in August, while fuel also experienced another price reduction, albeit a minor one. The fuel index dipped by 0.5% month-on-month, slowing to an annual rate of 1.8%.

While transport’s overall inflation waned since 2022 when it had accounted for 44% of overall inflation in that year. That figure has dropped to 9% for 2024, putting it behind other contributors such as housing & utilities and food and non-alcoholic beverages (NAB).


Meanwhile, food and NAB picked up in August, rising to 4.7%. While most product groups recorded higher annual rates, there were some that recorded lower rates.

Bread & cereals increased for a third consecutive month (0.4%), with notable increases for bread flour (2.1%), brown bread (13%) and white bread (1.2%). Rice increased by 17.3%, pizza and pies went up 10.9% and hot breakfast cereals went up by 7.9%

Meanwhile, the meat index recorded an annual increase, chicken and beef products were cheaper with whole chicken (down 2.2%), sausage (down 1.7%), chicken giblets (1/3%) and beef mince (down 1.3%). Other meats such as bacon, ham. biltong, chicken portions and corned beef were more expensive.

Hot beverages remain the group with the highest rate among all food & NAb groups, as instant coffee hit a 19-month at at 22.3%.The average price for 250 grams of instant coffee was R67,37 in August 2024, up from R52,71 in August 2023.

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Compiled by Matthew Petersen

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