South Africa Inflation Rate Slows to Nearly 4-Year Low

South African annual inflation rate eased to 4.4 percent in January of 2015 from 5.3 percent in the previous month. It is the lowest figure since April of 2011 due to a fall in transport cost and lower food prices.

Year-on-year, transport cost fell 2.5 percent, following a 1.7 percent drop in the previous month, driven by a 17.6 percent decline in petrol prices. Cost of food and non-alcoholic beverages slowed to 6.5 percent from 7.2 percent in December. Meanwhile, upward pressures came from cost of miscellaneous goods and services (up 7.3 percent from 7.1 percent in December 2014) and housing and utilities (up 5.7 percent, the same rate as in the previous month).

On a monthly basis, consumer prices dropped 0.2 percent, following a similar fall in December. The transport index decreased by 3.0 percent, mainly due to a 127c/litre decrease in the price of petrol. 

The food and non-alcoholic beverages index increased by 0.9 percent. The following components in the food and non-alcoholic beverages index increased: other food (2.0 percent), cold beverages (1.7 percent), fish (1.5 percent), meat (1.4 percent), sugar, sweets and desserts (1.0 percent), oils and fats (0.7 percent), hot beverages (0.6 percent), bread and cereals (0.5 percent), milk, eggs and cheese (0.2 percent) and vegetables (0.1 percent). The following component decreased: fruit (-1.0 percent).

The miscellaneous goods and services index increased by 0.6 percent between December 2014 and January 2015. 

Northern Cape (4.3 percent), Gauteng (4.3 percent), KwaZulu-Natal (4.2 percent) and Limpopo (4.0 percent) showed inflation rates lower than the headline one. In contrast, Western Cape (4.9 percent), Eastern Cape (4.8 percent), Free State (4.6 percent), North West (4.5 percent) and Mpumalanga (4.5 percent) showed higher price increases. 

South Africa Inflation Rate Slows to Nearly 4-Year Low

Statistics South Africa | Joana Taborda |
2/18/2015 10:14:09 AM