This week Statistics South Africa published its latest consumer price index (CPI) which shows that headline inflation decreased from 3.2% in January to 2.9% in February.
In the last 12 months inflation has gone below the Reserve Bank’s inflation target on three separate occasions. In May and June last year inflation was also below the lower end of the Reserve Bank target of 3%.
The largest consumer of household spending in the CPI basket is medical insurance taking up 7.6% of household spending. This year medical aid schemes increased their prices less than last year with a 4.7% average increase compared to 9.6% in February 2020.
Fuel prices increased in consecutive months in January and February by 5.2% after decreasing for four consecutive months.
Food and beverage inflation increased by 5.2% in February after reaching a 12 month peak of 6% in December 2020.
Below are some of the items that recorded the biggest annual increases from February 2020 to February 2021:
- Beef offal: +35.6%
- Sweet potatoes: +28.3%
- Dried beans: +26.2%
- Broccoli: +22.6%
- Cauliflower: +18.4%
- Lettuce: +18%
- Whiteners: +17.6%
- Fresh whole chicken: +15.7%
- Beef steak: +14.7%
Bread and cereal inflation decreased from its 12 months high of 5.1% to 4.6% in January. The price of white bread rose by 8%, and super maize meal prices lower by 3.5%.
Milk, eggs and cheese product prices increased by 6.4%.
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