CPI steady at 3.2% in February as housing and utilities drive inflation trends

Source: Supplied.

The primary contributors to the annual inflation rate included housing and utilities, which saw a 4.4% increase and contributed 1.0 percentage point, as well as food and non-alcoholic beverages, which rose by 2.8% and added 0.5 of a percentage point. Restaurants and accommodation services also played a role in the overall inflation rate.

Meanwhile, categories such as recreation, sport and culture, alcoholic beverages and tobacco, and communication recorded higher annual inflation rates compared to previous months.

“Inflation cooled for several product categories, most notably, personal care and miscellaneous services, health, restaurants and accommodation, furnishings, household equipment and routine maintenance and transport,” Stats SA director: CPI Operations, Lekau Ranoto, said.

The annual rate for food and non-alcoholic beverages accelerated to some 2.8% in February from 2.3% in January.

“Fruit and nuts, vegetables, hot beverages, seafood, meat and cereals recorded higher rates. On the down side, cold beverages milk, dairy and eggs, oils and fats and sugar confectionary and desserts witnessed slower price increases,” she said.

Ranoto said inflation in maize meal – a staple in South African households – reached a 17-month high, with samp inflation also reaching a 19-month high in February.

“The rise in prices is driven by inflationary pressure from the farming and manufacturing of maize according to the latest producer price index data. On average, consumer prices for meat stayed the same in February, compared with January, resulting in a monthly change of 0%. The annual rate was also 0%.

“While meat remained subdued, inflation for hot beverages continues to accelerate. The annual change in the price index for hot beverages was 14.6% in February, up from 13.7% in January,” Ranoto said.

Meanwhile, Stats SA has also recorded a 10.5% increase in medical-aid premiums this year and health services rose by 6.1%, compared with a 5% rise last year.