Stats SAFin24 reports that the consumer inflation rate dipped in March, after sustained increases since November 2019 saw the rate reach a 15-month high in February.  

According to figures released by Statistics SA on Wednesday, the annual consumer price index (CPI) decreased to 4.1% year-on-year in March 2020, from 4.6% in February 2020.  Month-on-month inflation, increased by 0.3%.  Stats SA collected the CPI data only for the first three weeks in March as the nationwide lockdown brought economic activity to a standstill in many sectors before the end of the month, dramatically restricting what consumers could buy.  The inflation rate for food and non-alcoholic beverages was slightly higher than the overall inflation, at 4.2% year-on-year.  Categories that saw the biggest price increases in March were housing and utilities (4.8%) and miscellaneous goods and services (6.4%).  Researchers have forecast that prices will fall in coming months.  Absa has forecast CPI at around 2.6% in the second quarter of 2020.


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