Annual consumer price inflation slowed for the second-consecutive month in September as fuel prices declined for a second month in a row.
Today, Statistics South Africa said the consumer price index (CPI) eased to 7.5% in September, from 7.6% in August, edging further down from the 13-year high of 7.8% recorded in July.
This means that inflation has remained above 7% for four-consecutive months since June, and for five months in a row above 6% since May as the crippling effects of rising prices weigh in.
Though this September inflation print matched market expectations, it remained above the upper limit of the South African Reserve Bank’s target range of 3 to 6%.
For much of this year, inflation was mainly driven by sharp increases in food and non-alcoholic beverages and fuel prices due to the war in Ukraine.
Stats SA said the CPI, excluding the two categories, registered an annual increase of 4.9%, up from 4.6% in August, indicating that higher inflation had spread beyond the two groups.
However, fuel prices declined by 6.4% between August and September.
The Stats SA chief director for price statistics, Patrick Kelly, said that although annual food and non-alcoholic beverages inflation continued to accelerate, monthly price changes were softer in September.
“Annual food and non-alcoholic beverages inflation increased to 11.9%, from 11.3% in August. The 0.5% monthly increase, however, was lower than the 1.8% monthly rise recorded in August,” Kelly said.
“After sustained price increases during much of the year, the index for oils and fats tumbled by 6,1% between August and September. This dragged the annual rate down to 29% from 37.6% in August.
“Prices for sunflower oil decreased by 8% in the month, with the average price of a 750ml bottle of cooking oil falling to R41.38 from a high of R45.33 in July.
“Despite this decrease, the price is significantly higher than the R30.98 consumers paid in September 2021.”
On a monthly basis, consumer prices edged up by 0.1%, lower than 0.2% recorded in August, in line with market estimates
BUSINESS REPORT