South Africa Inflation Rate Accelerates in April

South African annual consumer prices quickened to 6.1 percent in April of 2014 from 6 percent in March. The inflation accelerated for the fifth straight month to the highest rate since August, driven by a rise in food prices.

Year-on-year, education cost recorded the highest increase (8.7 percent), followed by prices of restaurants and hotels (8.5 percent). Food cost accelerated to 7.8 percent from 7.2 percent in March, mainly driven by a 10.2 percent increase in cost of bread and cereals and a 9.9 percent rise in vegetables prices. Transport cost slowed slightly to 6.8 percent (6.9 percent in March) and housing prices increased 5.1 percent. 

Month-over-month, the inflation rate slowed to 0.5 percent in April from 1.3 percent in March, mainly due to lower transport prices. The transport index increased by 0.4 percent due to a 5c/litre increase in the price of petrol, following last month’s 36c/litre surge.

The food and non-alcoholic beverages index increased by 1.3 percent, the same rate recorded in March. The following components increased: meat (2.0 percent), bread and cereals (1.7 percent), milk, eggs and cheese (1.7 percent), fish (1.6 percent), hot beverages (0.7 percent), oils and fats (0.6 percent), sugar, sweets and desserts (0.6 percent) and vegetables (0.5 percent). In contrast, prices of fruit and cold beverages fell 1.5 percent and 0.2 percent, respectively. 

The provinces with an annual inflation rate lower than or equal to headline inflation were Western Cape (5.9 percent), Northern Cape (5.9 percent), Mpumalanga (5.9 percent) and North West (5.7 percent). The provinces with an annual inflation rate higher than headline inflation were Limpopo (6.8 percent), KwaZulu-Natal (6.7 percent), Eastern Cape (6.5 percent), Free State (6.4 percent) and Gauteng (6.2 percent).

South Africa Inflation Rate Accelerates in April

Statistics South Africa | Joana Taborda |
5/21/2014 10:04:30 AM