Stats SA announced on Wednesday consumer price inflation (CPI) was 3.2% in February, unchanged from January, much cooler than analysts projected.
The main contributors to the 3.2% annual inflation rate were housing and utilities, food and non-alcoholic beverages and restaurants and accommodation services.
In February, the annual inflation rate for goods was 2.5%, up from 2.4% in January, and for services was 3.8%, down from 4.0% in January.
Stats SA director for CPI operations Lekau Ranoto said recreation, sport and culture, food, communications, alcoholic and non-alcoholic beverages and tobacco recorded higher annual inflation rates in February.
“Inflation cooled for several product categories, most notably personal care and miscellaneous, health, restaurants and accommodation, furnishings, household equipment and routine maintenance and transport.”
She said the annual rate for food and non-alcoholic beverages accelerated to 2.8% in February from 2.3% in January while fruit, nuts, vegetables, hot beverages, seafood, meat and cereals also recorded higher rates.
“On the downside, cold beverages, milk, dairy and eggs, oils and fats and sugar, confectionery and desserts witnessed slower price increases. Maizemeal inflation reached a 17-month high and samp inflation a 19-month high in February. According to the latest producer price index data, the rise in prices is driven by inflationary pressure from farming and manufacturing of maize.”
The South African Reserve Bank’s monetary policy committee kicked off its meeting this week and is expected to announce the repo rate on Thursday afternoon.
TimesLIVE
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