Contrary to market predictions that prices would decline for the month, inflation in South Africa increased even more in March. The latest Stats SA data show that consumer price inflation increased to 7.1% in March from 7.0% in February. At 5.2%, core inflation was reported as being stable. The reverse was what economists had predicted, with many predicting a little decline to 6.9%.
The main causes of the 7.1% annual inflation rate were transportation, housing and utilities, food and non-alcoholic beverages, and miscellaneous products and services. Food and non-alcoholic beverages climbed by 14.0% year over year and made 2.4 percentage points to the overall rise. Housing and utilities saw a 4.0% year-over-year growth and made a 1.0 percentage point contribution.
The transportation sector grew by 8.9% annually and added 1.3 percentage points. 0.9 of a percentage point was contributed by the 5.9% year-over-year growth in other goods and services. The annual rate of inflation for goods was 9.4% in March, down from 9.5% in February, and the annual rate of inflation for services was 4.5%, down from 4.6% in February. The tendency of rising food prices is still present.
Food and non-alcoholic beverage inflation accelerated further in the year ending in March, rising by 14.0%. Since the 14.7% increase in March 2009 (14 years ago), this represents the highest annual increase. Prices for personal care items increased by 11.1% in the 12 months to March. This is the highest annual rate since the 12.0% in October 2009. Due to lower fuel prices, transport inflation has decreased.
In the year ending in March, the transport index increased by 8.9%, which is less than the 9.9% annual pace seen in February. After increasing by 9.9% annually in February, the transport index increased by 8.9% in the year ending in March. Current information on education costs.
A survey of tuition costs is conducted once a year in March. In total, fees rose by 5.7% in 2023, compared to a 4.4% growth in 2022.
Primary and preprimary schools had fee increases of 6.3%, secondary schools of 5.8%, and university institutions of 5.3%.