Consumer inflation slowed for a third consecutive month, cooling to 4.4% in August, down from 4.6% in July, according to the latest data released by Statistics South Africa on Wednesday.
This is the lowest inflation since April 2021 when the rate was also 4.4%.
Lower annual rates were recorded for several product groups, most notably transport, housing, and restaurants and hotels. By contrast, inflation for food and non-alcoholic beverages (Nab) and alcoholic beverages and tobacco edged higher in August.
All transport-related products recorded softer annual rates in August, according to the latest data.
“Fuel prices continued to trend downward, declining for a third consecutive month. The fuel index dipped by 0.5% month-on-month, slowing the annual rate to 1.8%,” Statistics SA said.
For inland 95-octane petrol motorists paid 15c less per litre in August (R23.11) compared with July (R23.26).
Diesel followed a similar trend, with motorists enjoying a fourth consecutive cut. The average price for a litre of diesel was R23.23 in August compared with R23.35 the month before.
Transport’s influence on overall inflation has waned since mid-2022, when it was the biggest factor behind the rise in the cost of living. It accounted for 44% of overall inflation in July that year. In August 2024, transport accounted for 9%, placing it behind other major contributors such as housing and utilities and food and Nab. In August, housing and utilities accounted for a quarter of the total inflation rate.
After an eight-month downward trend, annual food and Nab inflation picked up in August, rising to 4.7% from 4.5% in July.
“Most product groups registered higher annual rates, including bread and cereals; meat; fish; milk, eggs and cheese; oils and fats and vegetables. Lower rates were recorded for fruit; sugar, sweets and desserts; and both hot and cold beverages,” Statistics SA said.
Annual bread and cereals inflation quickened for a third successive month. Products with the largest annual price increases include rice (up 17.3%), pizza and pies (up 10.9%) and hot breakfast cereals (up 7.9%). The monthly rise in bread and cereals was 0.4%, with notable increases recorded for grain-based products such as bread flour (up 2.1%), brown bread (up 1.3%) and white bread (up 1.2%).
While the meat index increased on an annual basis, prices dipped by 0.4% between July and August. Several chicken and beef products were cheaper in the month, with notable decreases recorded for fresh whole chicken (down 2.2%), sausage (down 1.7%), chicken giblets (down 1.3%) and beef mince (down 1.3%).
Stats SA’s survey of municipal service charges in August showed that electricity tariffs increased by a monthly 0.1%, taking the annual rate to 11.5%.
