South Africa’s Inflation Rate Declines To Near 8-Year Low
The latest information from statistics South Africa shows that South Africa’s September inflation rate fell to near 8-year low.
According to the data released on Wednesday, the annual headline consumer inflation slowed to 4.1 percent in September compared to 4.3 percent in August.
The costs of goods and services excluding those from food and energy sectors slowed to 4 percent in September compared to 4.3 percent in August, while month-on-month basis prices leaped up 0.2 percent in contrast with a 0.1 percent increase in the previous month.
“The inflation rate has hovered between 4 percent and 5 percent since December last year and has been below 4,5 percent for the past three months. More significantly, it has remained below the South African Reserve Bank’s (SARB) 6 percent monetary policy ceiling since April 2017,” Stats SA said in a statement.
Notably, poor harvests are responsible for the significant increase in the prices of bread and cereals in the past one year.
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Statistics SA said super maize prices increased 15.7 percent year-on-year in September while that of special maize rose by 31.3 percent. Brown bread prices, on the other hand, were up by 7.6 percent.
Demand for accommodation for college and university students is to blame for the current price surge, Stats SA said.
“The product groups that had the highest annual price increases in September were electricity and university boarding fees, ” it said.
Statistics SA also noted that the increasing electricity supply cost has led to an increase in power costs amid the tough economic environment.
The Pretoria-based national statistical service highlighted the declining domestic holiday packages attributing it to the “current poor economic conditions.”
Featured Image Courtesy: Dissolve
