South Africa's inflation slows in August 2022
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Category: Economics, inflation, cost of living
Date: 12 October 2022 The cost of living crisis caused by higher inflation rates is still biting South African consumers hard. In August 2022, South Africa's inflation rate came in at 7.6% down from 7,8% recorded in July 2022.
The decline in the annual inflation rate was largely attributed to a decline in South African fuel prices due to easing global oil prices |
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Lower fuel prices helps ease South Africa's inflation
Annual consumer inflation dipped to 7,6% in August from 7,8% in July. The monthly increase in the consumer price index (CPI) was 0,2%, the lowest reading since January 2022 when it was also 0,2%.
South Africa's annual inflation rate since 2009
South Africa's annual inflation rate since 2009
Fuel prices decreased by 3,8% between July and August, with petrol falling by 5,0% and diesel by 0,9%. This pushed the annual rate for fuel down to 43,2% from 56,2% in July. The welcome decrease in the cost of fuel had an impact on the overall transport index, which declined by 1,0% between July and August.
In contrast to fuel, food inflation continued upwards. The food and non-alcoholic beverages (NAB) index increased by 11,3% in the twelve months to August, higher than the reading of 9,7% in July. Annual food and NAB inflation has climbed significantly from the recent low of 6,0% in April this year and has remained above 5,0% since October 2020. Nine of the eleven food and NAB categories recorded an annual inflation rate above 8,0% in August.
Bread & cereals registered an increase of 3,1% between July and August, pushing the annual rate from 13,7% to 17,8%. Maize meal increased by 4,8% from July, taking the annual rate to 29,1%1. Brown bread registered a monthly rise of 2,2% and cake flour 3,9%.
Annual meat inflation eased slightly from 9,4% in July to 9,2% in August, with a monthly increase of 0,7%. Annual meat inflation has remained above 8,0% since May 2021.
Prices for milk, eggs & cheese increased by 2,1% between July and August. Products with higher than average monthly increases include cheddar cheese (3,1%), low fat milk (2,9%) and full cream milk (2,6%).
Oils & fats hit another annual high – 37,6% in August, up from 36,2% in July. The monthly rate, however, has slowed from its peak of 10,1% in May this year to 1,1% in August.
Hot beverage prices steamed to their highest annual rate in 64 months at 11,8% (compared with 12,1% in April 2017), stirred up by monthly increases in rooibos tea (7,6%) and instant coffee (3,9%).
Household cleaning products (detergents) recorded significant price increases. Washing powder is 26,2% more expensive than a year ago. Laundry soap will set you back an additional 33,9% compared with August last year, and the price of dishwashing liquid has climbed by 13,6% over the same period. Overall, the price index for cleaning and maintenance products increased by 23,4% over the past 12 months.
In contrast to fuel, food inflation continued upwards. The food and non-alcoholic beverages (NAB) index increased by 11,3% in the twelve months to August, higher than the reading of 9,7% in July. Annual food and NAB inflation has climbed significantly from the recent low of 6,0% in April this year and has remained above 5,0% since October 2020. Nine of the eleven food and NAB categories recorded an annual inflation rate above 8,0% in August.
Bread & cereals registered an increase of 3,1% between July and August, pushing the annual rate from 13,7% to 17,8%. Maize meal increased by 4,8% from July, taking the annual rate to 29,1%1. Brown bread registered a monthly rise of 2,2% and cake flour 3,9%.
Annual meat inflation eased slightly from 9,4% in July to 9,2% in August, with a monthly increase of 0,7%. Annual meat inflation has remained above 8,0% since May 2021.
Prices for milk, eggs & cheese increased by 2,1% between July and August. Products with higher than average monthly increases include cheddar cheese (3,1%), low fat milk (2,9%) and full cream milk (2,6%).
Oils & fats hit another annual high – 37,6% in August, up from 36,2% in July. The monthly rate, however, has slowed from its peak of 10,1% in May this year to 1,1% in August.
Hot beverage prices steamed to their highest annual rate in 64 months at 11,8% (compared with 12,1% in April 2017), stirred up by monthly increases in rooibos tea (7,6%) and instant coffee (3,9%).
Household cleaning products (detergents) recorded significant price increases. Washing powder is 26,2% more expensive than a year ago. Laundry soap will set you back an additional 33,9% compared with August last year, and the price of dishwashing liquid has climbed by 13,6% over the same period. Overall, the price index for cleaning and maintenance products increased by 23,4% over the past 12 months.
Products with largest price increases over last year
Products with largest price increases over last year