Cape Town – The latest inflation data released by Statistics SA shows that consumer inflation has slowed to a 13-month low of 6.3% in May, down from 6.8% in April.
This is good news for consumers who have been struggling with rising prices.
Consumer price inflation slowed primarily due to a cooling in food prices and a decrease in fuel prices.
The inflation rate in May was lower than economists’ expectations, with the median estimate being 6.5%.
Annual consumer price inflation slowed to 6,3% in May from 6,8% in April. This is the lowest reading since April 2022 when the rate was 5,9%.
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— Stats SA (@StatsSA) June 21, 2023
Food inflation, which includes food and non-alcoholic beverages, eased to 11.8% from 13.9% in April, with meat prices falling by 0.4%.
However, prices for sugar, sweets, and desserts increased by 11.9% in the year to May. The average prices of white sugar and chocolate also rose over the same period. Cold beverage prices were 10.5% higher than the previous year, and restaurant prices increased by 1.2% between April and May.
The Reserve Bank has been raising the repo rate to curb inflation, and this decrease brings inflation closer to the target range of three to six percent.
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Compiled by Betha Madhomu
