South Africa’s consumer price inflation increased to 4.9% in August, up from 4.6% in July 2021.

The August CPI number is the fourth consecutive month where the annual increase in inflation is higher than the midpoint (4.5%) of the South African Reserve Bank’s inflation target range.

Pricier petrol and diesel, as well as increases in vehicle prices, contributed to the hotter inflation.

Fuel prices are currently at record highs – with the price of inland 95-octane petrol reaching R18.30 per litre last month. Fuel prices increased by 4.9% between July and August, and by 19.6% over the last 12 months.

Vehicle prices increased at a rate higher than overall inflation across all 16 months from May 2020 to August 2021, Statistics SA said. There was also a sharp 22% spike in airfares between July and August, which contributed to transport inflation.

But Statistics SA says there are signs that food inflation may be slowing down.

While meat prices are still climbing – up almost 11% in August, prices for bread and cereal products fell by 0.5%. Maize meal prices decreased by 1.2% and white bread by 1.1%. Cooking oil prices dipped by 0.4% and margarine by 0.8% month-on-month.

The Reserve Bank’s monetary policy committee is meeting this week, and is expected to announce its interest rate decision on Thursday. No change is expected.

SOURCE:

Inflation heats up as fuel, meat prices rise | Fin24 (news24.com)