In September 2024, consumer price inflation in South Africa slowed significantly, dropping to 3.8% from 4.4% in August 2024.
Story Summary:
- Consumer price inflation dropped to 3.8% in September 2024 from 4.4% in August 2024.
- Transport costs, particularly fuel, decreased by 9%, contributing to the overall inflation slowdown.
- Despite the decline, food and housing costs continue to rise, keeping the cost of living high for many households.
Consumer price inflation in September 2024: Here’s what you must know
This is based on the latest report from Statistics South Africa. The drop reflects the rate at which prices of goods and services have increased compared to the same time last year.
While inflation is still present, it has eased, meaning that the general cost of living has increased at a slower pace than in previous months.
What’s behind the slowdown?
The primary factors contributing to this drop include a decrease in transportation costs, which saw a -1.1% drop year-on-year due to the declining cost of fuel, which experienced a sharp decrease of 9% in September.
Other sectors like housing, utilities, and food still saw price increases, with housing and utilities rising by 4.8% and food by 4.7%, but these were not enough to offset the drop in transportation costs.
What does this mean for you?
This decrease in inflation is positive news for South African consumers.
It suggests that price hikes in goods and services are slowing down, offering some relief to households.
However, with significant price increases still present in key areas like food, utilities, and services, the cost of living remains a challenge for many.
How does this affect goods and services?
- Food and Non-Alcoholic Beverages: Prices for food and non-alcoholic beverages rose by 4.7%, with items such as vegetables, dairy, and bread seeing increases. While food prices continue to rise, the pace has slowed slightly compared to previous months.
- Housing & Utilities: Housing and utility costs, which include electricity and rent, contributed the most to inflation, rising by 4.8%. This affects a broad range of households, particularly with rising electricity tariffs.
- Transport: Transport costs fell significantly, by -1.1%, largely due to a sharp drop in fuel prices. This has contributed to the overall decline in inflation for September 2024.
While inflation has slowed, prices are still increasing, just at a slower rate.
Moreover, future fluctuations in the fuel market, global economic conditions, and local policy changes could affect inflation rates in the coming months.
