SA’S CONSUMER INFLATION HITS THREE-YEAR LOW

Fri 25 October 2024:

South Africa’s annual consumer price inflation dropped to 3.8 percent in September from 4.4 percent in August, hitting the lowest print since March 2021, official data showed Wednesday.

Patrick Kelly, chief director for price statistics at Statistics South Africa (Stats SA), attributed the lower inflation rate to declining transport costs, particularly falling fuel prices.

“The transport category entered deflationary territory for the first time in 13 months, with the annual rate falling from 2.8 percent in August to -1.1 percent in September,” he noted.

Kelly highlighted that fuel prices in South Africa have decreased for the fourth consecutive month. The price of inland 95-octane petrol was 22.19 rands (about 1.25 U.S. dollars) per liter in September, the lowest since February last year.

According to Stats SA, the price index of food and non-alcoholic beverages increased by 0.6 percent in September compared to August on a month-on-month basis, a slight rise in the cost of these items during the period.

Some economists are expecting another 25-basis-point repurchase rate cut in November as the consumer price index continues to decline. Jannie Rossouw, an economist at Wits University, told Xinhua in a telephone interview that there is room for more rate cuts.

“This is a positive development. It shows that applying the correct monetary policy can help lower the inflation and give room for more rate cuts,” Rossouw said.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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