S. Africa’s annual inflation hits lowest since June ’20

South Africa’s inflation increased by 2.8 per cent in the 12 months to October 2024, down from 3.8 per cent in September, according to data released by Statistics South Africa on Wednesday. This marks the lowest rate since June 2020, when inflation was 2.2 per cent.

The decrease was largely driven by falling fuel prices, with petrol and diesel prices dropping 5.3 per cent month-on-month (MoM), leading to an annual fuel inflation rate of -19.1 per cent. The price of inland 95-octane petrol dropped to R21.05, the lowest since February 2022.

The transport index also saw a significant decline, falling 5.3 per cent year-on-year (YoY) and contributing 0.8 percentage points to the overall reduction in inflation. Meanwhile, food and non-alcoholic beverage inflation dipped to 3.6 per cent, the lowest since November 2019, with most subcategories cooling.

Notably, bread and cereal prices fell 0.5 per cent month-on-month, reducing annual inflation for the category to 4.6 per cent, while milk, eggs, and cheese saw a sharp decline in inflation to 4.1 per cent.

However, sugar, sweets, and desserts saw an annual inflation rate of 6.9 per cent, and cold beverages increased by 7.0 per cent annually due to higher prices for fizzy drinks and mineral water. Despite some price hikes in hot and cold beverages, inflation continued its overall downward trend in October.

Attribution: Statistics South Africa

Subediting: Y.Yasser