Fuel prices and medical inflation see rise in CPI

Fuel prices cast a shadow as consumer price inflation (CPI) increased to 5.4% in September from 4.8% in August, Statistics South Africa said on Wednesday.

The fuel index increased for a second consecutive month, rising 7.6% between August and September. The price of inland 95-octane petrol jumped by R1.71 per litre in September, reaching a 13-month high of R24.54.

The transport category, which is mainly influenced by fuel, exerted strong upward pressure on the monthly inflation rate. Transport contributed 0.4 of a percentage point to the 0.6% monthly rise in the CPI.

After three consecutive months in negative territory, annual fuel inflation jumped from -11.7% in August to 1.5% in September.

Annual health inflation edged higher to 6.5% in September from 6.2% in August. This is the highest rate for health since November 2017 when it was also 6.5%, Stats SA said.

Prices for medical products increased by 7.5% in the 12 months to September.

Food inflation was slightly higher after cooling for the past five months.

The annual rate for food and nonalcoholic beverages inched higher to 8.1% from 8% in August. Meat, fish, oils and fats, fruit and nonalcoholic beverages all registered higher annual rates in September. Lower rates were recorded for bread and cereals, sugar, sweets and desserts, vegetables and milk, eggs and cheese.

Meat prices increased on average by 0.6% between August and September, pushing the annual rate up to 3.8%.

Poultry-related products experienced some upward price movement in September as producers started to cull birds in response to the outbreak of avian flu. Examples include fresh whole chicken and fresh chicken portions (both up 2.2%).

Egg prices registered a monthly increase of 0.3% after a decline of 0.4% in August.

Stats SA noted: “Prices for poultry-related products deserve a close watch in the coming months to gauge the impact of the avian flu outbreak.”

It said the October CPI, due for release on November 22, will provide the next update.

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