South Africa’s consumer price inflation was stable at 3.2% in February, driven by higher housing, utilities, and food costs. Notable trends included a rise in maize meal inflation to a 17-month high, alongside a significant increase in medical-aid premiums.
Consumer price inflation in South Africa remained steady at 3.2% in February, reflecting the same figure from January, as reported by Statistics South Africa. Key drivers of this inflation rate included housing and utilities, which experienced a 4.4% increase contributing 1.0 percentage point, alongside food and non-alcoholic beverages that rose by 2.8%, contributing an additional 0.5 percentage point. Notably, restaurants and accommodation also influenced the overall inflation landscape.
In contrast, categories such as recreation, sport and culture, alcoholic beverages and tobacco, and communication exhibited 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,” stated Lekau Ranoto, the Statistics South Africa director of CPI Operations.
The annual inflation rate for food and non-alcoholic beverages accelerated to 2.8% in February from 2.3% in January, influenced by increased prices for fruit, nuts, vegetables, hot beverages, seafood, meat, and cereals. Conversely, price growth slowed for cold beverages, milk, dairy, eggs, oils, fats, and sugar confectionery.
Ranoto also noted that inflation in maize meal, a staple in South African diets, reached a 17-month high, while samp inflation hit a 19-month high in February, as indicated by the producer price index data. Though consumer prices for meat registered no change from January, the annual rate remained at 0%.
Moreover, inflation for hot beverages rose to 14.6% in February, compared to 13.7% in January. Furthermore, Stats SA reported a 10.5% increase in medical-aid premiums this year, with health services rising by 6.1%, a jump from the previous year’s 5% increase.
In summary, South Africa’s consumer price inflation held steady in February at 3.2%, driven primarily by increases in housing, utilities, and food prices. While certain categories, such as meat, remained stable, inflation trends varied widely in other sectors. Increases in medical costs further highlight the evolving economic landscape as consumers navigate rising prices.
Original Source: www.zawya.com
