South Africa’s Consumer Price Inflation Remains Steady at 3.2% in February
Consumer price inflation in South Africa remained at 3.2% in February, unchanged from January. Key contributors included housing and utilities, along with food and beverages. The report noted increases in medical-aid premiums and health services, while certain commodity prices, such as maize meal, reached significant highs.
According to Statistics South Africa, consumer price inflation remained stable at 3.2% in February, mirroring the previous month’s rate. The key factors driving this steady inflation included notable increases in housing and utilities, which rose by 4.4%, contributing 1.0 percentage point to the overall rate. Additionally, food and non-alcoholic beverages saw a 2.8% increase, adding another 0.5 percentage point. Restaurants and accommodation services further influenced the overall inflation figures.
Various categories, such as recreation, sport and culture, as well as alcoholic beverages and tobacco, experienced a rise in annual inflation rates compared to prior months. Lekau Ranoto, the Director of CPI Operations at Stats SA, commented on the cooling of inflation across specific product categories, particularly personal care, health, and transport.
The annual inflation rate for food and non-alcoholic beverages increased to 2.8% in February, compared to 2.3% in January. Higher rates were noted for fruit and nuts, vegetables, hot beverages, seafood, meat, and cereals, whereas cold beverages, dairy products, oils and fats, and sweets experienced slower price increases.
Ranoto reported that maize meal inflation, a staple food in South Africa, reached a 17-month high, with samp inflation also hitting a 19-month peak. The price hikes are attributed to inflationary pressures in the farming and manufacturing sectors, as suggested by the latest producer price index data.
In spite of some stability, the consumer prices for meat remained unchanged in February, indicating no monthly change or annual inflation. Conversely, the inflation rate for hot beverages accelerated, with an annual change of 14.6% in February, increased from 13.7% in January.
Moreover, Stats SA indicated a significant 10.5% rise in medical-aid premiums this year, alongside a 6.1% increase in health services, an increase from the previous year’s 5%.
In summary, South Africa’s consumer price inflation held steady at 3.2% in February, primarily influenced by housing and utility costs as well as food and non-alcoholic beverages. While some categories saw price increases, others experienced slower inflation. Notably, the inflation for essential items like maize meal rose significantly. Additionally, the healthcare sector faced noticeable increases in costs associated with medical aid and health services.
Original Source: www.zawya.com
