Softer food & fuel inflation contributes to lower than expected August CPI figure - Stats SA

Softer food and fuel inflation took some of the heat off the headline rate as Stats SA released the latest inflation data.

Annual inflation unexpectedly lowered to 3.3% in August from 3.5% in July.

While this is a three-month low, it’s still the second-highest rate seen so far this year, after cooler prints in the first half of the year.
 
Out of the 13 categories in the basket, four registered a decline.

This includes food and non-alcoholic beverages and transport.

Chief director for price statistics at Stats SA, Patrick Kelly, said annual inflation for food and non-alcoholic beverages slowed to 5.2% in August, down from 5.7% the previous month.

"Within this, several categories eased, including cereals, seafood, dairy products, fruits and nuts and vegetables."
 
Kelly said that some staples were cheaper than they were a year ago, including white rice, which cost on average around R31.10 for a 1kg pack compared to the current prices R27 and R29.

While bread and pasta prices mostly remain flat, samp and maize meal prices are higher.

Prices vary according to retailers.

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