Consumer price inflation in South Africa sustained at 3.2% in February, with housing, utilities, and food being significant contributors. Notably, inflation rates rose for several categories while prices for specific food items showcased varying trends. Medical-aid premiums and health service costs have also increased substantially this year.
Consumer price inflation in South Africa remained constant at 3.2% in February, mirroring January’s rate, as reported by Statistics South Africa. Significant factors influencing this annual inflation included a 4.4% rise in housing and utilities, contributing 1.0 percentage point, alongside a 2.8% increase in food and non-alcoholic beverages, which added 0.5 percentage point. Services such as restaurants and accommodation also impacted the overall inflation rate.
Conversely, higher inflation rates were observed in categories like recreation, sport and culture, alcoholic beverages and tobacco, and communication as compared to previous months. “Inflation cooled for several product categories, most notably, personal care and miscellaneous services, health, and household equipment,” stated Lekau Ranoto, Director of CPI Operations at Stats SA.
In particular, food and non-alcoholic beverages saw an increase to 2.8% in February from 2.3% in January. Specific items driving this included fruit and nuts, vegetables, seafood, and cereals. Conversely, there were slower price increases for cold beverages, milk, and eggs. Ranoto indicated that inflation for maize meal has peaked at a 17-month high, while samp inflation also reached a 19-month high during February.
This increase in prices parallels inflationary pressures from both the farming and manufacturing sectors concerning maize, according to the recent producer price index. Notably, consumer meat prices remained unchanged in February, resulting in both monthly and annual inflation rates of 0%. “While meat remained subdued, inflation for hot beverages continues to accelerate,” noted Ranoto, with the annual price increase for hot beverages reaching 14.6% in February, up from 13.7% in January.
Additionally, there has been a reported increase of 10.5% in medical-aid premiums this year, alongside a 6.1% rise in health services, compared to a prior 5% rise last year.
The February CPI report reveals stability in consumer price inflation at 3.2% in South Africa, driven primarily by rising costs in housing and utilities, as well as food and non-alcoholic beverages. Meanwhile, several categories recorded higher inflation rates. The substantive increases in medical-aid premiums and health services suggest ongoing concerns in healthcare costs.
Original Source: www.zawya.com
