CPI cools further in October

JOHANNESBURG - South Africa's Consumer Price Inflation (CPI) has cooled for a fifth consecutive month. 

It's eased to 2.8% in October from 3.8% in September.

This is the lowest inflation print since June 2020, when the rate was 2.2%.
 
Statistics South Africa's chief director for price statistics, Patrick Kelly: “Falling fuel prices remain the primary factor behind the slowdown. Petrol and Diesel prices declined by 5.3% between September and October, taking the annual rate for fuel price to 19.1%.” 

Other inflation declines have been seen in some food and non-alcoholic beverages, transport, sugar, sweets and desserts. 

Hot and cold beverages showed high inflation alongside fizzy drinks and mineral water.  

Citibank Global Economist Gina Schoeman said this would have a positive effect on the economy.

"The reason and the place where we will see this first is in retail activity and services. Consumers who have this greater disposable income when inflation is falling will naturally spend this money on goods and services which translates into much stronger household consumption growth which is a very big proportion of GDP growth for the fourth quarter of South Africa."