Annual consumer price inflation rose to 5.3% in January from 5.1% in December last year, the first jump after two-consecutive months of moderation. The categories in the CPI basket with the largest annual price increases were restaurants & hotels at 8%, food & non-alcoholic beverages at 7.2%, and health at 6.5%.
Annual inflation for food and NAB slowed to 7.2% in January from 8.5% in December and 9% in November, Stats SA said. All sub-categories recorded lower annual rates, apart from sugar, sweets & desserts, oils & fats, and cold beverages. Annual inflation for bread & cereal products declined from 7.5% in December to 6.5% in January. Meat inflation was also softer, cooling from 3.9% to 2.2%.
A monthly decline of 5.2% in fuel prices between December and January was not enough to subdue the annual rate for fuel, which jumped from a decline of 2.5% in December to 3.3% in January. This contributed to a sharp rise in annual transport inflation to 4.6% from 2.6% in December.The data means inflation has moved further away from the 4.5% midpoint of the Reserve Bank's target band, where it prefers to anchor expectations. It is, however, still within the central bank's 3% to 6% range.
In January, the Monetary Policy Committee kept interest rates on hold at 8.25% in its first meeting of the year, having left the benchmark rate unchanged at a 14-year high for the past nine months. This was after annual consumer price inflation eased for a second month to 5.1% in December. Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day.
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