Consumer price inflation decreases slightly in March

Annual consumer price inflation was 5,3% in March after two months of increases, with the consumer price index increasing by 0,8% compared to February when it was one percent. Inflation held its ground between five percent and six percent since September 2023.

According to Statistics SA, the main contributors to the 5,3% annual inflation rate were: housing and utilities that increased by 5,9% and contributed 1,4 percentage points, miscellaneous goods and services that increased by 8,5% and contributed 1,2 percentage points, food and non-alcoholic beverages that increased by 5,1% and contributed 0,9 of a percentage point and transport that increased by 5,3% and contributed 0,8 of a percentage point.

The annual inflation rate for goods was 5,7% in March, down from 6,2% in February 2024 and five percent for services, up from 4,9% in February 2024.

Statistics SA said the increase in inflation for miscellaneous goods and services was again mainly driven by higher health insurance premiums, recorded by Statistics SA in February, when the average price of health insurance increased by 12,9% in 2024. The six percent annual increase in the health index was driven by increased prices of medical products and medical services.

The good news was that food inflation came in at a three-and-a-halfyear low, with inflation for food and non-alcoholic beverages slowing to 5,1% in March from 6,1% in February, down from its recent peak of 14% in March 2023, the lowest annual increase since September 2020 when the rate was 3,8%.

Bread and cereals registered a softer annual print of five percent from 6,1% in February, which is substantially lower than the recent high of 21,8% in January 2023. Bread flour, pasta, rusks, maize meal, ready-mix flour and white bread were all cheaper than a year ago.

Meat inflation also cooled in March thanks to lower beef and mutton prices. The annual rate for meat was 0,8% in March, significantly lower than the recent peak of 11,4% in February.

However, annual inflation for sugar, sweets and desserts has remained above the 15% level since June 2023. In March the rate was 17,8%, with the most significant annual price increases seen for brown sugar (up 22%), white sugar (up 20,1%), chocolate slabs (up 17,9%) and chocolate bars (up 15,9%).

Other notable price changes in March included alcohol and tobacco, fuelled by annual increases in excise taxes. The index increased by a monthly 1,9% in March, the highest monthly increase since March last year, when excise tax increases led to a 2,2% monthly increase. Prices increased by 4,5% overall in the 12 months to March.

Housing rent is also surveyed in March every year and this time it increased by 0,8%.

Transport increased by two percent between February and March, mainly due to a monthly increase of 5,3% in fuel prices. On average petrol increased by 5,2% and diesel by 5,3%.

Education fees, that are surveyed once a year in March, showed that education was 6,3% more expensive in 2024 than it was in 2023, exceeding the 5,7% annual increase in 2023. This is also the highest since 2020 when it was 6,4%.

High schools recorded the most significant increase in 2024 of 7,3%, followed by primary schools and tertiary institutions that cost 5,9% more than a year ago. Crèches increased their fees by six percent, while university boarding was, on average, 8,2% more expensive than a year ago. —