This is the lowest reading for inflation in South Africa since April 2021
Annual inflation eased for the fourth consecutive month in September, bringing it to 3.8% from 4.4% in August, according to data released by Statistics South Africa on Wednesday.
This is the lowest reading for inflation in South Africa since April 2021.
The CPI increased by 0.1% on a monthly basis in September.
According to the data, the main positive contributors to the 3.8% annual inflation rate were increases in housing and utilities (4.8%), miscellaneous goods and services (6.9%), food and non-alcoholic beverages (4.7%) and alcoholic beverages and tobacco (4.7%).
Transport was the only negative contributor (1.1%).
Economists expected annual inflation to come in at 4.1%, citing the increases in international food prices.
“The very large increase in international food prices in the month of September will add pressure to food price inflation. International food prices are a key contributor to local food costs as South Africa is a price taker for most agricultural food produced through either import, or export, parity pricing,” Investec economist Lara Hodes said in a statement.
“Specifically, the FAO Food Price Index was up 3% month-on-month in September, ‘marking the largest month-on-month increase since March 2022’. September saw a -92c/litre cut in the petrol price, which will have some dampening effect on the month’s inflation outcome. A further, notable cut was implemented at the beginning of October which will offer consumers further reprieve,” she said.
But Investec economist Annabel Bishop said in a note that consumers can expect a fuel price hike in November.
“A -R1.14/litre cut in the petrol price occurred in October, which will exert a significant effect on the inflation outcome, but November is currently in line for a petrol price hike, of about 25 cents a litre, mainly on higher international oil prices, as geopolitical tensions have risen, with risks to the upside.”
In September, the annual inflation rate of goods was 3.3%, down from 4.4% in August 2024; services was 4.4%, down from 4.5% in August 2024, data from Statistics South Africa shows.