Fin24 reports that contrary to forecasts, the annual consumer price inflation (CPI) rate is still heading higher – reaching 7.1% in March, up from 7.0% in February. Economists had expected CPI to cool to below 7% in March.
Instead, consumer prices rose by a full percentage point from February to March – the biggest monthly rise since July last year. This was largely the result of pricier food, Statistics SA said. Prices of food and non-alcoholic beverages rose by 14.0% over the past year, the biggest increase in 14 years. This contributed 2.4 percentage points to the total CPI annual rate of 7.1%. Prices of milk, eggs and cheese rose by 13.6% over the past year. But inflation has started cooling in the categories for bread and cereals (20.3%, down from 20.5% in February), meat (10.6% from 11.4%) as well as oils and fats (16.7% to 16%). While fuel prices rose by 4.5% between February and March, the transport index cooled to 8.9% in the 12 months to March, from 9.9% in February. The latest inflation number included school and university fees, which are surveyed once a year in March. Primary and pre-primary school fees were up 6.3%, while fees for secondary schooling rose 5.8% and by 5.3% at tertiary institutions. Textbook prices jumped 11.3%, the largest annual increase since 2009.
- Read the full original of the report in the above regard compiled by Helena Wasserman at Fin24
- Read too, Inflation accelerates for second consecutive month in March, at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page