Mixed reactions to lowest inflation figures recorded in a year

Johnathan Paoli

Statistics South Africa has praised the lowest annual inflation the country has experienced in the year, sitting at 5.3%, a decrease from 5.6% recorded in February – lower than economists’ expectations.

The National Statistical Service said on Wednesday following two months of increases, with the consumer price index going up by 0.8% compared to February when it was 1.0%; inflation has held its ground between 5% and 6% since September last year.

StatsSA said that the main contributors to the annual inflation rate were housing and utilities increasing by 5.9% and contributing 1.4 percentage points, miscellaneous goods and services that increased by 8.5% and contributed 1.2 percentage points, food and non-alcoholic beverages increased by 5.1% and contributed 0.9 of a percentage point and transport  increased by 5.3%, contributing 0.8 of a percentage point.

Lower food inflation came as a relief with a three-and-a-half year low, with bread and