SA consumer inflation quickens to 5.9%
Consumer price inflation hit 5.9% year on year in December, according to Statistics South Africa.
This is the biggest annual increase since the first half of 2017, when it was 6.1%.
On month-on-month basis, CPI rose by 0.6%.
Stats SA’s Patrick Kelly says the rise in transport costs is the biggest reason for the spike in consumer inflation.
“The factors driving the rise in the cost of living over the last few months were also behind December’s inflation reading. Specifically, large price rises in the transport category, particularly fuel, and increases in important food groups such as meat and oils and fats.”
The fuel price has increased by 40,5% between December 2021 and December 2020.
The latest rise in inflation could strengthen the argument for an interest rate hike when the South African Reserve Bank’s Monetary Policy Committee meets for the first time next Thursday.
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