Inflation inches higher as repo rate decision looms
Annual consumer inflation rose for the first time in four months in February, Stats SA announced on Wednesday.
The headline consumer price index rose at an annual rate of 7% in February, up from 6.9% in January.
It is the first time in four months South African consumers experience a rise in inflation, and comes a week before the South African Reserve Bank announces its latest repo rate decision.
The data shows that food, non-alcoholic beverages and transport were the main inflation drivers.
Stats SA’s Patrick Kelly says CPI rose by 0,7% between January and February, representing the largest monthly increase since July 2022.
“Prices for food and non-alcoholic beverages increased by 13,6% over the past 12 months, up from 13,4% recorded in January. The reading in February is the highest since April 2009 when it was also 13,6%. Annual inflation for bread & cereals was 20,5%, slightly lower than January’s 21,8%”.
“Maize meal, an important staple, continues to see high rates of inflation. Its price index increased by 2,2% between January and February, taking the annual rate to 34,7%. Meat inflation continues to accelerate, reaching 11,4% in February from 11,2% in January. This is the highest annual increase for meat since February 2018 (also 11,4%). The monthly rate, however, dropped to 0,2% from 2,6% in January. This was the lowest monthly increase for meat since February 2022 when there was no change”.
Fuel prices increased by 0,9% between January and February.
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