Statistics South Africa (Stats SA) has released fresh data revealing that the Consumer Price Index (CPI) rose by a modest 2.8% for the year ending October 2024. This marks a notable decline from the 3.8% recorded in September, representing the lowest inflation rate since June 2020, when it stood at 2.2% during the height of the COVID-19 pandemic.
According to Stats SA, this slowdown in inflation can primarily be attributed to a significant reduction in fuel prices. The agency reported that petrol and diesel costs fell by 5.3% between September and October, contributing to an annual fuel price adjustment of a striking -19.1%. In October, inland prices for 95-octane petrol saw a drop to R21.05—its lowest point since February 2022, when it was priced at R20.14.Patrick Kelly, the Chief Director for Price Statistics at Stats SA, highlighted that the aggregate transport index recorded an annual decrease of 5.3%, which pulled the overall inflation rate down by 0.
nsumers navigating the rising tide of living expenses.Food prices also played a substantial role in influencing the CPI. A range of staple items, including bread and cereals, saw a monthly price decline of 0.5%, decreasing the annual inflation rate to 4.6%. Most notably, maize meal prices dropped by 2.0%, marking the third consecutive month of decline, while consumers benefitted from lower average prices for spaghetti, macaroni, rice, and samp.The dairy sector witnessed a steep drop in annual inflation for milk, eggs, and cheese, plunging to 4.1% in October from 6.9% in September.
Monthly, the rate showed a slight decrease of 0.2%, with consumers paying less for milk products, yoghurt, and cheddar cheese compared to the previous month. However, prices for custard, sour milk, eggs, and mageu increased in October.Despite some decreases, the beverage sector faced significant monthly increases with fizzy drinks and mineral water seeing unexpected price hikes. In contrast, certain products like dairy blends and fruit juice concentrates experienced decreases, creating a mixed bag for consumers.As South Africa’s economy navigates these turbulent waters, the latest CPI figures provide a much-needed glimmer of hope, particularly for households grappling with escalating living costs.
