In February, South Africa’s consumer price inflation remained unchanged at 3.2%. Key contributors were housing and utilities, as well as food and non-alcoholic beverages. There were noticeable increases in medical aid premiums and food prices, particularly for maize meal and hot beverages.
In February, South Africa’s consumer price inflation remained stable at 3.2%, identical to the January rate, as revealed by Statistics South Africa. The key factors influencing this inflation rate were housing and utilities, which surged by 4.4%, contributing 1.0 percentage point, alongside food and non-alcoholic beverages, which increased by 2.8%, adding 0.5 percentage points. Additionally, restaurants and accommodation services also were significant contributors.
Certain categories, including recreation, sport and culture, as well as alcoholic beverages and tobacco, experienced higher annual inflation rates compared to prior months. Notably, inflation for personal care, miscellaneous services, health, restaurants and accommodation, furnishings, household equipment and routine maintenance, and transport showed a decline in many product categories.
According to Lekau Ranoto, the Director of CPI Operations, the annual inflation for food and non-alcoholic beverages escalated to 2.8% in February, up from 2.3% in January. Higher rates were recorded for fruit, nuts, vegetables, hot beverages, seafood, meat, and cereals, while price hikes for cold beverages, milk, dairy, eggs, oils, fats, and desserts saw a slowdown.
Notably, inflation for maize meal, a staple in South African diets, reached a 17-month peak, with samp inflation also hitting a 19-month high in February. This increase is reportedly driven by inflationary pressures in the farming and manufacturing of maize, as indicated by recent producer price index data.
In February, consumer prices for meat remained stable compared to January, showing no monthly change and an annual rate also at 0%. Conversely, inflation for hot beverages surged, with an annual change in the price index reaching 14.6%, an increase from 13.7% in January. Furthermore, Statistics South Africa reported a substantial 10.5% rise in medical-aid premiums and a 6.1% increase in health services this year, compared to a 5% increase the previous year.
The stability in South Africa’s consumer price inflation at 3.2% in February underscores the impact of housing, utilities, and food on the overall economic landscape. While inflation for several product categories has eased, particularly in personal care and transport sectors, notable increases in medical aid premiums and certain food items signal ongoing inflationary pressure, particularly in essential commodities like maize meal and hot beverages.
Original Source: www.zawya.com
