Inflation inches higher in October to 7,6%
The headline consumer price inflation picked up slightly to 7,6% in October from 7,5% in September.
The monthly increase in the consumer price index (CPI) was 0,4%- up from 0,1%.
The latest data released by Statistics South Africa on Wednesday morning shows that bread and cereals, meat and dairy drove food prices higher.
"The annual rate for food and non-alcoholic beverages edged higher to 12,0% from 11,9% in September. Large monthly price increases were recorded for sweet biscuits (5,5%), macaroni (3,1%) and maize meal (1,7%).
"Annual meat inflation also quickened in October, rising to 10,5% from 9,9% in September. The dairy index (milk, eggs & cheese) registered an annual increase of 10,5%, the highest rate since February 2017 (10,7%)."
Fuel inflation continued to decline in October, as used vehicle prices rose.
"The annual change for the transport index was 17,1%, softer than September’s reading of 17,9%. Annual vehicle inflation climbed to 6,1% from 5,8% in September on the back of higher used vehicle prices. Used vehicles are on average 14,5% more expensive than a year ago, representing the highest annual rate since the current CPI series began in 2009."
The latest inflation figures comes a day ahead of the Reserve Bank’s final repo rate announcement of the year on Thursday.
The central bank is expected to hike the repo rate by 50 basis points.
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