CPI ticks up slightly in December, says Stats SA

22 January 2025 - 11:28
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Housing and utilities, miscellaneous goods and services, food and beverages and alcohol and tobacco contributed to the rise. Stock photo.
Housing and utilities, miscellaneous goods and services, food and beverages and alcohol and tobacco contributed to the rise. Stock photo.
Image: 123RF/ANDRIY POPOV

Stats SA announced inflation increased by 0.1% between November and December.

In a statistical release published on Wednesday, Stats SA said housing and utilities, miscellaneous goods and services, food and beverages and alcohol and tobacco contributed to the rise.

“Annual consumer price inflation was 3% in December, up from 2.9% in November. The CPI increased by 0.1% month-on-month in December.”

The statistical release said average annual CPI for 2024 was 4.4%, which was 1.6 percentage points lower than the corresponding average of 6% in 2023.

“In December, the annual inflation rate for goods was 1.9%, up from 1.6% in November, and services was 4.2%, down from 4.3% in November,” the report said.

Stats SA chief director of price statistics Patrick Kelly said meat products were 0.4% lower than December 2023, which was lower than November’s -0.1%, the lowest annual change for meat since May 2019, of -0.9%.

“IQF chicken portions, which is the highest-weighted meat item in the basket, increased by 2.2% month-on-month and stewing beef, which is the second highest-weighted meat item, increased by 2.7% month-on-month.”

He said hot beverages had the highest annual increase among the food and nonalcoholic beverages category at 13.5%, up from 13.1% in November.

“Inflation for food and nonalcoholic beverages ticked up to 2.5% from 2.3% in November. Annual price increases for bread and cereal products will still be at 3.7%,though prices dropped by 0.2% between November and December.”

The annual rate for rentals was 2.8% in the fourth quarter, down from 3.3% in the third quarter. The overall rate for housing and utilities went down to 4.4% from 4.7%. Vehicle inflation fell sharply from 7.2% in January and used vehicles declined 0.6% in December.

Fuel prices increased by 1.1% between November and December but are 10.2% lower than they were in December 2023, he added.

Standard Bank group head of South Africa macroeconomic research Elna Moolman said despite inflation going up, it has reached the bottom of the South African Reserve Bank’s 3% — 6% target range after two consecutive months of falling below the central bank’s target.

Business Times


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