Statistics South Africa (Stats SA) has announced that the Consumer Price Index (CPI) has increased for a second consecutive month, rising to 3,0% in December from 2,9% in November and 2,8% in October.
The monthly rate in December was 0,1%.
Inflation for food and non-alcoholic beverages (NAB) was 2,5%, up from 2,3% in November.
The annual rate for bread and cereals remained steady at 3,7%.
“The monthly rate was -0,2%, with several wheat-based products declining in price between November and December.
Examples include instant noodles (down 2,2%), cake flour (down 1,1%), macaroni (down 0,7%) and brown bread (down 0,6%).
The price index for meat softened by 0,4% in the 12 months to December, representing the lowest annual rate since May 2019 (-0,9%),” said Stats SA Chief Director, Patrick Kelly
Products that registered the largest annual declines included sausages (down 3,3%), pork (down 2,2%) and whole chicken (down 1,7%).
Several products were more expensive, however, including beef extract (up 5,1%), bacon (up 4,8%) and ham (up 4,2%).
The price index for hot beverages rose by 13,5%, the highest annual rate among all food and NAB groups.
Products in this category continued to witness sharp price increases.
Instant coffee was 16,1% more expensive in December 2024 compared with December 2023.
Other items experiencing hot inflation include black tea (up 14,2%), drinking chocolate (up 14,1%), ground coffee (up 8,0%), rooibos tea (up 7,8%) and cappuccino sachets (up 3,8%).
“Vehicle inflation dropped steeply during 2024 after starting the year at 7,2% in January, falling to 2,6% in December.
On average, used vehicles are now cheaper than they were a year ago, recording a decline of 0,6%.
The index for fuel rose by 1,1% between November and December. Despite this increase, fuel prices are 10,2% lower than in December 2023,” explained Kelly.
Other notable price changes in December include housing rentals, domestic worker wages, and the hospitality sector.
“The annual rate for actual rentals was 2,8% in the fourth quarter of 2024, down from 3,3% in the third quarter of 2024.
Owners’ equivalent rent inflation decreased to 2,4% from 2,9% over the same period.
These declines pulled the overall rate for housing and utilities down to 4,4% from 4,7%.
Domestic worker wages, also measured quarterly, recorded an annual increase of 4,0% in the fourth quarter of 2024, down from 4,1% in the third quarter of 2024,” noted Kelly.
Moreover, Kelly said inflation for restaurants and hotels slowed to 4,2% in December from 5,9% in November, and that this was largely due to a decline in hotel room rates between November and December.
