South Africa Inflation Rate Slows Further


South African annual inflation rate eased to a fresh four-year low 3.9 percent in February of 2015, as transport prices fell further while food cost slowed. Yet, monthly inflation rose to a seven-month high.

Year-on-year, transport prices fell 6.3 percent, after dropping 2.5 percent in January. Food prices rose at a slower 6.4 percent (6.5 percent in the previous month) and prices at restaurants and hotels increased 7 percent, easing from 7.4 percent in January.

Upward pressures came from alcoholic beverages and tobacco (8.2 percent from 7.4 percent in the previous month) and miscellaneous goods and services (7.8 percent from 7.3 percent).

On a monthly basis, consumer prices rose 0.6 percent, recovering from a 0.2 percent drop in January.

The food and non-alcoholic beverages index increased by 0.4 percent. The following components in the food and non-alcoholic beverages index increased: fish (1.9 percent), bread and cereals (1.4 percent), oils and fats (1.4 percent), hot beverages (0.9 percent), milk, eggs and cheese (0.7 percent), sugar, sweets and desserts (0.7 percent), vegetables (0.5 percent), other food (0.4 percent) and cold beverages (0.3 percent). The following components decreased: fruit (-7.3 percent) and meat (-0.1 percent).

Miscellaneous goods and services increased 5.2 percent, mainly due to a 9.0 percent rise in health insurance. Alcoholic beverages and tobacco went up 1.0 percent and cost of restaurants and hotels index increased 0.2 percent.  

In contrast, transport index decreased 2.5 percent, mainly due to a 93c/litre decrease in the price of petrol. 

The provinces with an annual inflation rate lower than or equal to headline inflation were Northern Cape (3.9 percent), Gauteng (3.8 percent), Limpopo (3.8 percent) and KwaZulu-Natal (3.7 percent). The provinces with an annual inflation rate higher than headline inflation were Eastern Cape (4.0 percent), Mpumalanga (4.0 percent), North West (4.1 percent), Free State (4.2 percent) and Western Cape (4.5 percent).

South Africa Inflation Rate Slows Further


Statistics South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
3/18/2015 8:33:08 AM