The annual consumer price inflation in South Africa showed resilience in February, remaining unchanged from January at 3.2%.
This steady print represents the highest inflation level seen in four months, with inflationary pressures primarily stemming from increased production costs, according to Statistics South Africa (Stats SA) on Wednesday.
Despite this uptick, the inflation rate still comfortably sits below the South African Reserve Bank’s target midpoint of 4.5%.
As South African consumers navigate these shifting economic conditions, the current inflation landscape continues to be characterised by varied pressures across different sectors, urging both policymakers and consumers to remain vigilant.
Stats SA reported that the inflation rate for food and non-alcoholic beverages surged to 2.8% in February, up from 2.3% the previous month.
Key food categories such as fruit and nuts, vegetables, hot beverages, seafood, meat, and cereals experienced significant rises in price, contributing to the overall inflationary trend.
Interestingly, some commodities demonstrated a deceleration in price increases.
Cold beverages, milk, dairy products, eggs, oils and fats, as well as sugar, confectionery and desserts, all recorded slower inflation in February.
However, maize-meal inflation soared to a 17-month high, with samp inflation remaining elevated at a 19-month peak, highlighting particular pressures in the agricultural sector.
“The rise in prices is driven by inflationary pressure from the farming and manufacturing of maize according to the latest producer price index data,” Stats SA said.
Moreover, inflation has cooled for various product categories, notably personal care, miscellaneous services, health, restaurants and accommodation, furnishings, household equipment, and routine maintenance.
Transport continued to see deflation, providing a rare relief amidst broader economic pressures.
On a monthly basis, consumer inflation saw a notable increase of 0.9% in February, marking the highest rise in a year, a sharp jump from the 0.3% increase recorded in January.
Notably, consumer prices for meat remained static when compared to January, with a monthly change of 0% and an annual rate also holding at 0%. This stability in meat prices is somewhat counterbalanced by the ongoing escalation of inflation for hot beverages.
BUSINESS REPORT