South Africa Inflation Rate Lowest Since 2021

Annual inflation rate in South Africa fell for a fourth consecutive month to 3.8% in September 2024, the lowest since March 2021, from 4.4% in February and below forecasts of 3.9%.

The main downward contribution came from transport costs which declined for the first time in 13 months (-1.1% vs 2.8% in August), mainly due to fuel (-9%).

A litre of inland 95-octane petrol was ZAR 22,19, the lowest since February 2023.

Price increases for vehicles have also slowed (3.6% vs 8.4% a year ago).

Meanwhile, cost of food and non-alcoholic beverages rose 4.7%, the same as in August.

Softer annual rates were recorded for hot beverages; meat; bread & cereals; while vegetables, fruit, recorded higher inflation rates.

In addition, cost of housing and utilities rose 4.8%, the same as in August but prices rose faster for alcoholic beverages & tobacco (4.7% vs 4.3%).

Compared to the previous month, the CPI edged up 0.1%, the same as in August.

Annual core inflation steadied at 4.1%.