Lerato Mbhiza
The annual consumer inflation increased for a third consecutive month in October, verging on the upper limit of the South African Reserve Bank’s inflation target range.
The headline rate was 5,9%, up from 5,4% in September. Consumer prices increased on average by 0,9% between September and October, the highest monthly rise in three months, Stats SA announced on Wednesday.
Inflation for food and non-alcoholic beverages (NAB) accelerated for a second consecutive month, rising to 8,7% in October from 8,1% in September and 8,0% in August.
The 1,5% monthly rise was the highest since January this year (1,8%). The biggest contributors to the uptick in inflation were food and non-alcoholic beverages and transport costs, which jumped 8.7% and 7.4% respectively.
The increase in the food index was driven by higher prices for poultry-related products, including eggs, that have come under increased upward pressure due to the outbreak of avian flu.
While inflation moved further away from the midpoint of the central bank’s 3% to 6% target range, where it prefers to anchor expectations, softer oil prices and the rand’s appreciation against the dollar since the monetary policy committee last met on September 21 may result in price-growth easing in the coming months.
In addition, core inflation, which excludes food and energy costs, slowed to 4.4% from 4.5% in September.
Chief Director for Price Statistics at Stats SA, Patrick Kelly, said four categories recorded annual inflation rates above 6,0% in October.
“The 1,5% monthly rise was the highest since January this year (1,8%). The annual rate for bread and cereals slowed to 8,8% from 9,2% in September.
“Maize meal prices declined by 1,3% between September and October, lowering the annual rate for this staple down to 8,6%. Rice, on the other hand, was 20,8% more expensive than it was a year ago.
“The average price of a kilogram of rice increased from R22,48 to R28,59 over this period,” said Kelly.
INSIDE POLITICS
