Lungile Ntimba
Stats SA results announced on Wednesday showed that consumer price inflation dropped down to 4.6% in July from 5.1% in June – the lowest recorded since 2021.
According to Stats SA, the monthly increase in the consumer price index (CPI) was 0,4%, higher than the 0,1% rise recorded between May and June.
Lower annual rates were recorded for several product groups, most notably food and non-alcoholic beverages (NAB), transport, and housing & utilities.
The results show that the annual rate for food and NAB decreased to 4,5% in July, from 4,6% in June. Food & NAB registered a slowing inflation trend since its most recent high of 9,0% in November 2023 and is currently at its lowest since September 2020 (3,8%).
Fuel prices receded for a second straight month, declining by 3,6% in July. Except for public transport, most categories in the transport groups witnessed lower annual rates, as transport inflation decreased from 5.5% in June to 4.2% in July.
The new data for electricity, water and property rates indicate that electricity tariff hikes were lower in 2024 compared to last year.
Overall, the housing and utilities increased by 2,6% between June and July, leading to an annual increase of 5,3%. This contributed 1,3 percentage points to the overall inflation rate.
On the other hand, a recent study conducted by the Human Sciences Research Council (HSRC) shows that South Africa is experiencing widespread food insecurity, with 20% of households across the country facing food shortages.
Professor Thokozani Simelane of the HSRC said the study sampled over 43 000 households nationwide and data was collected through a survey of the nine provinces initiated in 2019 and completed in 2023. The study revealed that South Africa is facing severe food insecurity.
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