Inflation in South Africa rose to 7.1% in March, Statistics South Africa (Stats SA) revealed on Wednesday.
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This means South Africans will pay more for goods, especially food and non-alcoholic beverages. According to the latest data, headline consumer inflation edged higher to 7.1% in March from 7% in February and 6.9% in January.
The monthly change in the consumer price index (CPI) was 1% in March, the most significant monthly rise since July 2022 when it was 1.5%.
“Food and non-alcoholic beverages and transport were the main drivers behind the annual and monthly increases,†the national statistics agency said.
Stats SA said inflation for food and non-alcoholic beverages continued to accelerate, with prices increasing by 14% in the 12 months to March.
“This represents the largest annual increase since the 14.7% rise in March 2009, 14 years ago.â€
In March, milk, eggs, cheese, sugar, sweets and desserts, fruit and vegetables, and “other food products†experienced upward inflationary pressure.
The milk, eggs and cheese product group witnessed its annual rate reaching 13.6% from the recent low of 3.7% in April 2022.
“The reading in March is the highest annual increase since February 2009’s print of 13.9%.â€
Meanwhile, bread, cereals, meat, oils, fats, and fish bucked the trend, recording slower growth.
In addition, the annual increase for bread and cereals was 20.3% in March, down from 20.5% in February.
On the other hand, meat inflation edged lower to 10.6% from 11.4% in February.
The prices of oils and fats decreased for the seventh successive month, dragging the annual rate to 16% from 16.7%.
The transport index, according to Stats SA, rose by 8.9% in the 12 months to March, down from the 9.9% annual rate recorded in February.
The downward shift was led by eight consecutive months of slowing fuel inflation, which reached 8.1% in March from 10.9% in February.
“This is much lower than the 56.2% peak in July 2022,†the agency said.
However, fuel prices rose by 4.5% between February and March due to the price of inland 95-octane petrol rising by R1.27 per litre.
Over all, school fees increased by 5.7% in 2023, higher than the 4.4% rise recorded in 2022.
Primary and pre-primary schools went up by 6.3%, while secondary schools soared by 5.8% and by 5.3% for tertiary institutions.
In addition, textbooks cost 113% more, while school bags rose by 10.6%, which is the most significant annual increase since October 2009.
New excise taxes for alcohol and tobacco products came into effect in March, contributing to a monthly increase of 2.2%.
Data for the first quarter survey of housing rentals are also included in the CPI for March.
Annual inflation for actual rentals was unchanged from December at 2.5%, while owner-occupied housing was 2.7% compared with December’s reading of 2,8%.
In March, inflation for household contents and services increased to 6.9% from 6.2% in February, which is the highest annual increase since June 2009.
Prices for appliances, tableware and equipment have also gone up by 7.7%.
Domestic worker wages increased by 1.2% in March from December, leading to a 5.2% annual rise – the highest since February 2019 when the same rate was recorded.
Prices for personal care items increased by 11.1% from 12 months to March. This is the highest annual rate since 12% in October 2009. ■