![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/Inflation-March-2023.jpg\")
<\/p>\nInflation in South Africa climbed even higher in March, moving counter to market expectations that pricing would ease for the month.<\/p>\n
According to the latest data from Stats SA, consumer price inflation climbed to 7.1%, up from 7.0% in February. Core inflation was recorded unchanged at 5.2%.<\/p>\n
Economists had anticipated a move in the opposite direction, with many forecasting a slight drop to 6.9%.<\/p>\n
The main contributors to the 7.1% 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 14.0% year-on-year, and contributed 2.4 percentage points to the total.<\/p>\n
Housing and utilities increased by 4.0% year-on-year, and contributed 1.0 percentage point.<\/p>\n
Transport increased by 8.9% year-on-year, and contributed 1.3 percentage points.<\/p>\n
Miscellaneous goods and services increased by 5.9% year-on-year, and contributed 0.9 of a percentage point.<\/p>\n
In March the annual inflation rate for goods was 9.4%, down from 9.5% in February; and for services it was 4.5% down from 4.6% in February.<\/p>\n
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Food inflation continues its upward trend<\/strong><\/p>\n Inflation for food & non-alcoholic beverages continued to accelerate, with prices increasing by 14.0% in the 12 months to March. This represents the largest annual increase since the 14.7% rise in March 2009 (14 years ago).<\/p>\n In March, milk, eggs & cheese; sugar, sweets & desserts; fruit and vegetables; and the product category \u2018other food products\u2019 experienced upward inflationary pressure. The milk, eggs & cheese product group witnessed its annual rate reaching 13.6% from the recent low of 3.7% in April 2022.<\/p>\n The reading in March is the highest annual increase since February 2009\u2019s print of 13.9%.<\/p>\n Bread & cereals, meat, oils & fats, and fish bucked the trend, recording slower growth. The annual increase for bread & cereals was 20.3% in March, down from 20.5% in February. Meat inflation edged lower to 10.6% from 11.4% in February.<\/p>\n Prices of oils & fats decreased for a seventh successive month, dragging the annual rate to 16.0% from 16.7%.<\/p>\n Transport inflation down on lower fuel prices<\/strong><\/p>\n The transport index rose by 8.9% in the 12 months to March, down from the 9.9% annual rate recorded in February.<\/p>\n The downward shift was led by eight consecutive months of slowing fuel inflation, which reached 8.1% in March from 10.9% in February. This is much lower than the 56.2% peak in July 2022.<\/p>\n However, fuel prices rose by 4.5% between February and March. This was mainly due to the price of inland 95-octane petrol rising by R1.27 per litre.<\/p>\n The latest data on education fees<\/strong><\/p>\n Education fees are surveyed once a year in March.<\/p>\n Overall, fees increased by 5.7% in 2023, higher than the 4.4% rise recorded in 2022. Fee increases were recorded for primary and pre-primary schools (up 6.3%), secondary schools (up 5.8%) and tertiary institutions (up 5.3%).<\/p>\n Other education-related products and services that recorded price increases include cr\u00e8ches (up 4.6%), university boarding fees (up 6.7%), textbooks (up 11.3%) and school bags (up 10.6%). The 11.3% rise in textbooks is the largest annual increase since October 2009 (12.0%).<\/p>\n Other notable price changes in March<\/strong><\/p>\n New excise taxes for alcohol and tobacco products came into effect in March, contributing to a monthly increase of 2.2%. However, the annual rate dropped slightly to 6.2% from 6.3% in February.<\/p>\n Data for the first quarter survey of housing rentals is also included in the CPI for March. Annual inflation for actual rentals was unchanged from December at 2.5%, while owner-occupied housing was 2.7% compared with December\u2019s reading of 2.8%.<\/p>\n In March, inflation for household contents and services rose to 6.9% from 6.2% in February. This is the highest annual increase since June 2009 (7.0%). Prices for appliances, tableware and equipment rose by 7.7%.<\/p>\n Domestic worker wages increased by 1.2% in March from December, leading to a 5.2% annual rise \u2013 the highest since February 2019 when the same rate was recorded.<\/p>\n Prices for personal care items increased by 11.1% in the 12 months to March. This is the highest annual rate since the 12.0% in October 2009.<\/p>\n The charts below show the products that recorded the largest percentage price increases in March.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/04\/Prices-March-2023-scaled.jpg\")
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