By Lehlohonolo Lehana.
Consumers are expected to feel some reprieve as inflation has continued to cool, slowing to 6.3% for May from 6.8% in April, – a 13-month low.
Statistics SA released the latest inflation data on Wednesday.
The consumer price index (CPI) increased by 0.2% between April and May.
Food inflation – the prices of food and non-alcoholic beverages – eased to 11.8% from 13.9% in April, which was close to the hottest level in fourteen years.
Food inflation only increased by 0.3% between April and May – the smallest increase since November 2021.
Meat prices fell by 0.4% from April to May and were 7.1% higher than a year before – from 9.5% in April. Bread and cereals inflation slowed to 18.1% in May from 20.8% in April.
Prices for oils and fats are now 2.4% cheaper than a year before.
But sugar, sweets and desserts grew more expensive – increasing by 11.9% in the year to May – from 10.7% in April.
From April to May, the price of white sugar increased sharply by 2.7% and slabs of chocolate by 2.9%.
In the 12 months to May, the average price of a 2.5 kg bag of white sugar increased from R49.68 to R53.00. The average price of a slab of chocolate (80 grams) rose from R17.11 to R20.26 over the same period.
Prices of cold beverages were 10.5% higher in May from a year before – the highest rate since 2019.
Statistics SA also reported that restaurant prices increased by a sizeable 1.2% between April and May – taking the annual rate for restaurants to 7.4%.
Fish and seafood dishes were 11.3% more expensive, followed by pizza (up 9.3%) and red meat-based products (up 9.0%).
Between April and May, the prices of pies were hiked by 2.3%, followed by hikes of around 2% for hot beverages, poultry-based products, hamburgers and red meat-based products.
While petrol prices were hiked in May, fuel prices were only 3.5% higher than a year before – from 5.0% in April. However, vehicle prices increased to 7.5% – the highest increase since 2017.
Statistics SA also noted sharp monthly price increases for pain killers (+3.0%) and vitamin and mineral supplements (+6.6%).
The latest CPI number will reassure the Reserve Bank’s monetary policy committee, which has already hiked interest rates by 475 basis points in an effort to cool inflation.
While Governor Lesetja Kganyago said monetary policy had become restrictive, the panel wouldn’t ease borrowing costs “until the inflation trajectory changes and inflation moves toward the midpoint of the inflation target range on a forward-looking basis.”
The rand was 0.3% stronger at R18.32 per dollar at 10:37 a.m. in Johannesburg, while yields on 2026 government bonds dropped 11 basis points to 9.44%.