December sees biggest CPI drop since 2017
Consumer inflation recorded its biggest drop since April 2017 in December.
For December, the Consumer Price Inflation (CPI) stands at 4.5%, down from 5.2% in November.
The monthly data was released by Stats SA on Tuesday, citing the drop in the fuel price as one of the main reasons for the drop.
The price of fuel decreased to 14.2% in December, down from 23.1% in November.
Stats SA says the drop gave the consumers' wallet "a slight breather over the holiday period'.
"Bread and cereal showed a deflationary 5% in December 17 compared to a modest inflation of 1.1% this year.
"Milk eggs and cheese was 1.4% last month compared to 4.8% in December 17. An inflation for meat products is now at 1.8% significantly down from the 14% registered in December 2018.
"Sugar, sweets and desserts reflected annual inflation of 3.9% in December 17 and dropped steeply to - 5.9% in July 2018 and now months later reads at 4%," says Stats SA.
Econometrix economist Laura Campbell says this is good news for hard-pressed consumers.
She predicts that inflation will drop even further in January due to the decrease in fuel at the beginning of the year
"The fact that inflation comes down and its now at the mid-point of the 3 to 6% inflation target means that it's unlikely that consumers will be faced with another interest rate hike at least in the first half of the year, " Campbell says.