By Lehlohonolo Lehana.
South Africa’s headline consumer inflation fell to 5.5% year on year in November from 5.9% in October, statistics agency data showed on Wednesday.
Core inflation, which excludes food and fuel prices, rose to 4.5% year-on-year in November from 4.4% in October, the agency said.
November’s headline reading remains within the South African Reserve Bank’s inflation target range of 3% to 6%.
At the bank’s last policy meeting in November, Governor Lesetja Kganyago reiterated the bank’s expectation that inflation would stabilise around the mid-point of its target band by 2025.
The monthly decline was primarily driven by the 5.5% decrease in the fuel price index, which caused the annual rate for fuel to lower from 11.2% in October to 1.8% in November.
Chief Director for Price Statistics at Stats SA, Patrick Kelly, said a monthly decrease in the fuel price index mainly drove the decline in November.
“The decline was mainly driven by a monthly decrease of 5,5% in the fuel price index, which drove the annual rate for fuel lower to 1,8% in November from 11,2% in October. This, in turn, led to a reduction in the annual rate for transport, which decreased to 4,3% from 7,4%,” he said.
Kelly said Inflation for food and non-alcoholic beverages was at a four-month high of 9,0% – mainly due to the bird flu outbreak.
“Meat inflation crept up to 3,5% from 3,4% in October.
“The outbreak of avian flu continued to disrupt the poultry market. The annual rate for IQF (individual quick frozen) chicken was 7,3% in November, up from 5,5% in October. Non-IQF frozen chicken recorded an annual rate of 9,1% in November.
“Egg prices continued to boil, heating by a monthly 10,6%. This pushed the annual rate for eggs higher to 39,9% from 24,4% in October.
“Fruit products recorded an annual increase of 11,5% in November, the highest reading since December 2020, when the rate was 11,8%.
“The annual print for sugar, sweets & desserts was 18,5%, up from October’s 17,6%. In the 12 months to November, prices for white sugar increased by 21,4%, brown sugar by 23,7% and chocolate slabs by 11,8%,” said Kelly.
The annual inflation for bread and cereals also declined for a seventh consecutive month, edging lower to 8,5% from 8,8% in October.
“Vegetable inflation eased too, cooling slightly to 23,5% from 23,6% in October. Onion prices declined for a fifth straight month, decreasing by 6,1% in November compared with October.
“Consequently, the annual rate for onions cooled to 2,5%. This reading is much lower than the eye-watering peak of 64,5% recorded in June this year.
“The price index for hot beverages rose by 11,4% in the 12 months to November. Apart from August 2023, the annual inflation rate for instant coffee has occupied double-digit territory since March 2022,” he added.