Publications
Partners
Johannesburg – Inflation peaked at 6.8% in December 2016, according to Statistics South Africa (Stats SA).
This is two percentage points up from 6.6% reported in the previous month.
“On average, prices increased by 0.4% between November 2016 and December 2016,” Stats SA stated.
The average annual consumer price index (CPI) for 2016 was 6.4%. This is 1.8 percentage point higher than the annual average in 2015, at 4.6%.
Food prices increased the most in the past year, with the price inflation for food and non-alcoholic beverages up by 11.7%. It increased by 0.8% in December. Food price inflation contributed 0.1 of a percentage point to the month’s CPI.
Inflation for housing and utilities increased by 5.6% over the past year, rising 0.1% in December. Household contribution to the month’s CPI was 0.2 of a percentage point to December inflation.
Transport inflation was lower, down 0.4 of a percentage point from November. This is mainly due to the 20 cents per litre drop in the petrol price. Its contribution to the month's CPI was down 0.1 of a percentage point.
In Momentum Investment’s (MMI's) previous report on the overview of December 2016, released earlier this month, analyst Sanisha Packirisamay stated that food inflation may be lower by mid-year 2017.
Based on MMI’s forecasts, headline inflation could drop more meaningfully on a two-year outlook.
