Pixabay
Annual consumer price inflation eased for the second consecutive month in December, retreating to 5.1% from 5.5% in November.
In its latest figures out on Wednesday, Statistics South Africa said CPI remained unchanged month-on-month in December.
Inflation softer in the second half of 2023
StatsSA said the December release concludes the results for 2023, noting that the average inflation rate for the year was 6.0%, lower than 2022’s 6.9%.
"Inflation was relatively hot in the first five months of 2023 (January–May), with the headline rate consistently above 6.0%. Inflation eased below this level for the remaining seven months of the year. The highest reading in 2023 was 7.1% in March. The lowest was 4.7%, recorded in July".
Chief director for price statistics Patrick Kelley said the product categories that ended the year with annual rates higher than 6.0% in December were food & non-alcoholic beverages (8.5%), restaurants & hotels (7.0%), and health (6.5%).
Inflation cools for bread & cereals and oils & fats
Kellys said the 8.5% inflation rate for food & non-alcoholic beverages (NAB) was lower than November’s 9.0%, with five sub-categories, including bread and cereals, softening.
He said inflation for oils & fats remained in deflationary territory, recording an annual change of -5,9% in December.
"Cooking oil prices dropped by 1.6% between November and December. The average price for a 750 ml bottle of sunflower oil was R35.82 in December, lower than the February 2023 peak of R37.47 and well below the high of R45.33 recorded in July 2022," Kelley said.
He also noted that while the price category for sugar, sweets, and desserts as a whole was also softer, sugar prices continued to escalate with white and brown sugar 20.1% and 24.6% respectively, more expensive than a year ago.
Poultry and egg prices continue to heat up
Kelley said the food and non-alcoholic beverages sub-category which includes milk, eggs, and cheese, among others, registered an increase in inflation.
"Annual meat inflation ticked up to 3.9% in December from 3.5% in November. Sharp annual price increases continue to haunt poultry products, such as chicken giblets (up 18.5%), fresh chicken portions (up 14.6%), non-IQF frozen portions (up 8.8%), whole chickens (up 8.4%) and IQF chicken portions (up 6.4%).
"The milk, eggs, and cheese price index increased by 14.5% in the 12 months to December, higher than November’s rate of 13.9%. The 12-month increase in egg prices was 38.0%, slightly lower than November’s print of 39.9%.
"The transport index increased by 2,6% in the 12 months to December 2023 – much lower than the annual rate of 13,9% recorded in December 2022. The slowdown is mainly a result of lower fuel prices that decreased by 2,5% over the previous 12 months and by 2,7% between November and December," Kelley said.
