Inflation in South Africa remains almost stable

Inflation in South Africa remains almost stable

South Africa’s inflation index stood at 7.2 percent in December 2022, according to Statistics SA, compared to 7.4 in November and 7.6 in October.

As for the components that contributed, the source said food and soft drink prices fell to 12.4, just slightly below November’s 12.5.

In contrast, the consumer price index rose 0.4 percent month-on-month in December, according to Statistics SA.

Analyzing year-to-year behavior, the company found that in December 2022, bread and grain prices were 20.3 percent higher than a year earlier, while oils and fats prices rose 22 percent.

Likewise, meat cost consumers 10 percent more in 2022 than in 2021, while vegetables are up 12 percent.

On the other hand, transportation costs in December 2022 were a little more than 13 percent higher than a year ago.

The Reserve Bank of South Africa expects inflation to return steadily to 4.5 percent, which is the bank’s target for the second quarter of 2024.

Local businessmen are hoping the bank will raise interest rates when the Monetary Policy Committee (MPC) meets again on January 26.

Average annual consumer price inflation for 2022 was 6.9 percent, according to Statistics SA, the highest in the past 13 years.

This corresponds to 4.5 percent in 2021.