Statistics South Africa (Stats SA) has recorded an increase in the Consumer Price Index (CPI), with data showing that inflation increased in December to 3%, from 2.9% in November 2024.
“At the end of each year, Statistics South Africa calculates the average inflation rate for the year. The average inflation for 2024 was 4.4%, down from the average of 6% in 2023,” Stats SA Chief Director, Patrick Kelly, said on Wednesday.
Inflation for food and non-alcoholic beverages ticked up to 2.5% from 2.3% in November.
Annual price increases for bread and cereal products was steady at 3.7%. Although prices dropped by 0.2% between November and December, a number of week based products showed monthly declines, including brown bread down 0.6%, macaroni 0.7% lower, instant noodles with a negative 2.2%, and cake flour with a 1.1% decrease.
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%). 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%).
Hot beverages remains in the food and non-alcohol beverages category with the highest annual increase at 13.5%, up from November’s increase of 13.1%.
Instant coffee was 16.1% more expensive in December 2024 compared to December 2023.
“Housing rentals are measured every quarter. The annual rate for actual rentals was 2.8% in the fourth quarter of last year, down from 3.3% in the third quarter.
“Owners’ equivalent rent inflation decreased to 2.4% from 2.9% over the same period. These declines pulled an overall rate for housing and utilities category down to 4.4% from 4.7%,” Kelly said.
Vehicle inflation dropped steeply during 2024 after starting the year at 7.2% in January.
Used vehicles are on average cheaper than they were a year ago, recording an annual decline of 0.6% in December.
Fuel prices increased by 1.1% between November and December. However, fuel prices are 10.2% lower than they were in December 2023.
“Inflation for restaurants and hotels dropped to 4.2% in December, from 5.9% in November. This is largely a result of hotel room rates dropping by 4.2% between November and December, pulling the annual change for hotels down to 1.9% in December compared to 7.6% in November,” Kelly said.
The CPI release contains results of the monthly Survey of Consumer (Retail) Prices. The purpose of the survey is to collect and provide information regarding changes in the overall level of prices of all goods and services bought by the average household.
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