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<\/p>\nAnnual consumer price inflation was 7.0% in February 2023, up from 6.9% in January 2023, as food price inflation climbed even higher.<\/p>\n
The consumer price index increased by 0.7% month-on-month in February 2023.<\/p>\n
According to Stats SA, the main contributors to the 7.0% annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services.<\/p>\n
Food and non-alcoholic beverages increased by 13.6% year-on-year, and contributed 2.3 percentage points to the total CPI annual rate of 7.0%.<\/p>\n
Housing and utilities increased by 4.0% year-on-year, and contributed 1.0 percentage point.<\/p>\n
Transport increased by 9.9% year-on-year, and contributed 1.4 percentage points.<\/p>\n
Miscellaneous goods and services increased by 6.1% year-on-year, and contributed 0.9 of a percentage point.<\/p>\n
In February, the annual inflation rate for goods remained unchanged at 9.5%; and for services it was 4.6% up from 4.3% in January.<\/p>\n
Worryingly, core inflation is also ticking higher, now sitting at 5.2% (January: 4.9%). Core inflation represents inflation excluding food and non-alcoholic beverages, fuel and energy.<\/p>\n
An increase in core inflation means that prices are rising higher across the board, excluding the shocks from food and energy, which are being impacted by global factors.<\/p>\n
Rising core inflation is also a signal to the South African Reserve Bank that interest rate hikes may not be curbing inflation as intended and could see further hikes coming.<\/p>\n
Economists at Absa noted earlier this month that higher core inflation was expected and cautioned against seeing the number as an indication of broadening inflationary pressures.<\/p>\n
“The data should be watched more closely to distinguish between widening inflationary pressure and idiosyncratic factors related to medical-health insurance,” it said.<\/p>\n
According to Stats SA, medical services (doctors, dentists and hospital ward fees) are surveyed once a year in February.<\/p>\n
Prices here increased by 5.3% in February 2023 compared with the 5.0% rise recorded in February 2022. The index for health insurance increased by 4.4% between January and February as several companies implemented annual premium increases.<\/p>\n
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Food prices shoot up<\/strong><\/p>\n Following the increase in food price inflation for January 2023, food price inflation in February continued to climb, adding even more pressure to strained households.<\/p>\n Prices for food and non-alcoholic beverages increased by 13.6% over the past 12 months, up from 13.4% recorded in January.<\/p>\n The reading in February is the highest since April 2009, which was also 13.6%.<\/p>\n Annual inflation for bread & cereals was 20.5%, slightly lower than January\u2019s 21.8%. Maize meal, an important staple, continues to see high rates of inflation. Its price index increased by 2.2% between January and February, taking the annual rate to 34.7%.<\/p>\n Notable monthly price increases were also recorded for rusks (up 6.8%), macaroni (up 4.4%) and savoury biscuits (up 4,.0%).<\/p>\n Meat inflation continues to accelerate, reaching 11.4% in February from 11.2% in January. This is the highest annual increase for meat since February 2018 (also 11.4%). The monthly rate, however, dropped to 0.2% from 2.6% in January. This was the lowest monthly increase for meat since February 2022, when there was no change.<\/p>\n Prices for milk, eggs and cheese increased by 12.3% in the twelve months to February, up from 10.9% in January. Notable annual increases were recorded for cheddar cheese (up 15.2%), feta cheese (up 14.9%), custard (up 14.9%), fresh low-fat milk (up 14.7%) and long-life full cream milk (up 14.3%).<\/p>\n Annual inflation for the oils and fats category slowed for a sixth consecutive month, edging lower to 16.7%, the lowest reading since April 2021 (also 16.7%).<\/p>\n The category \u2018other food\u2019 saw its annual inflation rate climb from 7.7% in June 2022 to 15,0% in February 2023. The monthly rate in February was 2.3%. Products in this category recording high monthly price increases include baby milk formula (up 7.2%), baby cereal (up 4.6%), baking powder (up 2.8%) and tomato sauce (up 2.5%).<\/p>\n Cold beverages registered an annual price increase of 8.5%, with a monthly rise of 2.7%. Monthly increases were recorded for fruit juices (up 4.0%), fizzy drinks in a can (3.3%) and fizzy drinks in a bottle (up 3.1%).<\/p>\n Fuel prices increased by a relatively modest 0.9% between January and February. The annual rate slowed to 10.9% \u2012 the lowest reading since March 2021 (2.4%).<\/p>\n
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