CPI drop fails to mask rise in food, alcohol index

THE HEADLINE consumer price index (CPI) annual inflation rate for all urban areas dropped 0.5 percent to 3.9 percent last month, Statistics SA said yesterday.

On average, prices increased by 0.6 percent between January and February.

The food and non-alcoholic beverages index increased by 0.4 percent between January and February, while the annual rate decreased to 6.4 percent in February from 6.5 percent in January.

Fish (1.9 percent), bread and cereals (1.4 percent), oils and fats (1.4 percent), hot beverages (0.9 percent), milk, eggs and cheese (0.7 percent), vegetables (0.5 percent), other food (0.4 percent) and cold beverages (0.3 percent) all increased.

Fruit (-7.3 percent) and meat (-0.1 percent) decreased.

The alcoholic beverages and tobacco index increased by 1 percent between January and February. The annual rate increased to 8.2 percent in February, from 7.4 percent in January.

The transport index decreased by 2.5 percent between January and February, mainly due to a 93c/litre decrease in the petrol price.

The annual rate decreased to -6.3 percent in February from -2.5 percent in January.

The restaurants and hotels index increased by 0.2 percent between January and February. The annual rate decreased to seven percent in February from 7.4 percent in January.

The miscellaneous goods and services index increased by 5.2 percent between January and February, mainly due to a 9 percent increase in health insurance.

The annual rate increased to 7.8 percent in February from 7.3 percent in January.

The provinces with an annual inflation rate lower than or equal to headline inflation were the Northern Cape (3.9 percent), Gauteng (3.8 percent), Limpopo (3.8 percent) and KwaZulu-Natal (3.7 percent).

The provinces with an annual inflation rate higher than headline inflation were the Eastern Cape (4 percent), Mpumalanga (4 percent), North West (4.1 percent), Free State (4.2 percent) and the Western Cape (4.5 percent). – Sapa