Inflation Edges Up To 3 In December

Annual inflation edged up for the second consecutive month in December to 3 from 2.9 the month before, bringing 2024s average annual consumer inflation to 4.4, Statistics South Africa said on Wednesday.

On a monthly basis, the headline consumer price index rose by 0.1 in December.

The annual inflation rate was driven up by housing and utilities 4.4, miscellaneous goods and services 6.6, food and non-alcoholic beverages 2.5 and alcoholic beverages and tobacco 4.3.

But the December print came in lower than economists had predicted.

Investec economist Lara Hodes, for example, expected the annual rate to rise to 3.1 driven mainly by transport and food costs. But inflation for transport eased in December to 2. Nedbank economists anticipated 3.3 annual inflation for December, also as a result of higher fuel costs and the normalisation of the base in food inflation.