Cpi Remains Steady At 3.2

Consumer price inflation CPI has remained at 3.2 in February, unchanged from January, according to the latest data released by Statistics South Africa on Wednesday.

According to Stats SA the main contributors to the annual inflation rate were housing and utilities 4.4 and contributing 1.0 percentage point food and non-alcoholic beverages 2.8 and contributing 0.5 of a percentage point, and restaurants and accommodation service.

Recreation, sport and culture, food and non-alcoholic beverages, alcoholic beverages and tobacco and communication recorded higher annual inflation rates in February, said Stats SA Director of CPI Operations, Lekau Ranoto.

Inflation cooled for several product categories, most notably, personal care and miscellaneous services, health, restaurants and accommodation, furnishings, household equipment and routine maintenance and transport.

The annual rate for food and non-alcoholic beverages accelerated to 2.8 in February from 2.3 in January.

Fruit and nuts, vegetables, hot beverages, seafood, meat and cereals recorded higher rates. On the downside, cold beverages milk, dairy and eggs, oils and fats, and sugar, confectionary and desserts witnessed slower price increases, she said.

Ranoto said price inflation of maize meal a staple in South African households had reached a 17-month high, with samp inflation also reaching a 19-month high in February.

The rise in prices is driven by inflationary pressure from the farming and manufacturing of maize, according to the latest producer price index data. On average, consumer prices for meat stayed the same in February, compared with January, resulting in a monthly change of 0. The annual rate was also 0.

While meat remained subdued, inflation for hot beverages continues to accelerate. The annual change in the price index for hot beverages was 14.6 in February, up from 13.7 in January, Ranoto said.

Meanwhile, Stats SA also recorded a 10.5 increase in medical aid premiums with health services prices rising by 6.1, compared with 5 for the same period last year. SAnews.gov.za