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Petrol and food prices drive CPI down to 5.3%

Jan 21 2015 10:27

Cape Town – Stats SA has confirmed that the consumer price inflation (CPI) dropped to 5.3% in December 2014 from 5.8% in November 2014.

"On average, prices decreased by 0.2 percent between November 2014 and December 2014," Stats SA said.

Earlier, Fin24’s inflation expert Riyadh Bhyat predicted the CPI would drop to this level “as a result of the petrol price decreases”.

READ: Consumer price inflation set to drop

Petrol and food prices, which are key drivers of changes in the CPI, both showed lower annual inflation rates, according to Stats SA.

The food and non-alcoholic beverages index decreased by 0.4 percent between November and December last year. Food inflation continued its slowing trend with a 7.4% annual rate compared to 7.7% in November 2014, Stats SA said.

The main drivers of the declining food inflation have been bread and cereals (4.9%), vegetables (4.9%) and fruit (9.7%).

DOWNLOAD: The full PDF report

Vegetables, other food, fish, cold beverages, sugar, sweets and desserts, bread and cereals, oils and fats, milk, eggs and cheese and hot beverages decreased. Fruit and meat increased.

The housing and utilities index increased by 0.5% between November and December.

Stats SA said this was mainly due to a 0.9% increase in actual rentals for housing on a 0.7% increase in owners' equivalent rent.

The annual rate decreased to 5.7% in December from the 5.8% in November.

The transport index decreased by 1.6% between November and December.

This was mainly due to a 69c/litre drop in the petrol price. “This was the fourth month in a row that the petrol price decreased,” Stats SA said. “In December petrol had an annual deflation of 5.5% from an annual inflation of 1.2% in November 2014.”

The miscellaneous goods and services index increased by 0.1%. The annual rate increased to 7.1% in December from 6.9% the previous month.

Books, newspapers and stationary showed large increases in December 2014 (1.1% monthly increase), with newspapers increasing by 3.1%. Inflation for this group now stands at 11.4%, according to Stats SA.

KwaZulu-Natal, North West, Northern Cape, Gauteng, Free State and Mpumalanga had an annual inflation rate lower than or equal to headline inflation.

- With additional reporting from Sapa.

stats sa  |  inflation  |  cpi


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