Consumer price index jumps 3.2% in July

STATISTICS South Africa (StatsSA) has reported a spike of 3.2 percent in the consumer price index (CPI) in July, which was higher than June’s 2.2 percent. The increase in CPI, a financial instrument used to measure inflation, was reportedly driven by a hike in fuel prices, which came as the country was moved into level 2 of the lockdown.

“Motorists felt some pain as the price of inland 95-octane petrol climbed from R13.40 a litre in June to R15.12 a litre in July. The average price for a litre of diesel jumped from R13.13 to R14.62,” StatsSA said in a statement yesterday.

According to StatsSA, despite this increase, fuel prices are 6.2 percent cheaper this year than they were in July 2019, when the price of 95-octane fuel was R15.81 a litre.

Consumers took another financial knock during the Covid-19 pandemic as the prices of funeral ceremonies rose exponentially due to the strict sanitisation protocols. StatsSA confirmed this yesterday, saying: “Funeral expenses increased sharply in July, rising by 8.7 percent year-on-year.”

This is far higher than the 1.1 percent annual rise in April (funeral-related prices are recorded once a quarter). Prices for gravestones increased by 3.2 percent in July, higher than April’s 0.3 percent.

The price of brown and white bread increased on a monthly basis by 2.3 and 2 percent, respectively, between June and July.

To ease some of the economic hardships, StatsSA reported a decrease in the overall prices of municipal tariffs compared with July last year.

Electricity tariffs increased by 6.3 percent, lower than July 2019’s rise of 10.5 percent.

Water tariffs increased by 9.9 percent, compared with 10.3 percent in July last year, and municipal rates increased by 3.5 percent, compared with 6.3 percent in July last year.