Consumer inflation slows to 4,7% in July
Headline consumer inflation eased to 4,7% in July from 5,4% in June, Stats SA announced on Wednesday.
Patrick Kelly, the Chief Director for Price Statistics, says this is the lowest reading since July 2021, when the rate was 4,6%.
"Previously a major upward driver of inflation, the transport category helped pull overall inflation down in July. Previously a major upward driver of inflation, the transport category helped pull overall inflation down in July."
This as consumer prices increased on average by 0,9% between June 2023 and July 2023.
This is up from the monthly rise of 0,2% recorded in May and June.
Kelly says after peaking in July 2022, fuel prices began to ease.
"Inland 95-octane petrol receded to R22,46 per litre in July 2023. For a vehicle with a 50-litre fuel capacity, this translates to a saving of R214.
"The decline in fuel prices weakened the upward push of transport on consumer inflation. The annual rate for fuel was negative at -16,8% in July 2023. This dragged the transport category down into negative territory for the first time since January 2021. This also occurred in 2020 when annual transport inflation was negative from April to June and again from October to December."
He adds that annual inflation for food eased in July, while annual inflation for alcoholic beverages is picking up.
"Food inflation has also eased, but not as quickly as transport. The annual rate for the food & non-alcoholic beverages (NAB) category was 9,9% in July, lower than June’s print of 11,0%. Annual inflation for bread & cereals slowed to 13,1% from 15,5% in June. Maise meal, an important staple, was cheaper in July than June, with prices falling on average by 0,7%.
"Annual meat inflation declined for a fifth consecutive month, easing to 5,1%. The annual rate for milk, eggs & cheese increased to 14,4% from 14,1% in June. Cheese prices are rising sharply, with large annual increases recorded for cheese spread (up 19,5%), cheddar cheese (up 19,0%) and Gouda cheese (up 16,6%).
"Annual inflation for hot beverages steamed to 9,0% in July from 8,7% in June, with the rate for instant coffee increasing from 10,3% to 11,5%.
"If it wasn’t bad enough for coffee drinkers to fork out more for their caffeine fix, sugar prices were up too. White sugar is, on average 20,8%, and brown sugar 22,8% more expensive than a year ago. The sugar, sweets & desserts category recorded an annual inflation rate of 18,7%, up from 16,4% in June. This is the highest reading for this category since May 2017.
"Inflation for alcoholic beverages is also picking up. The annual rate for the category increased to 7,8% in July from 6,9% in June. Annual wine inflation edged higher to 9,8%, and beer saw its rate bubble up to 7,4%."
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