Food prices help slow consumer inflation
Consumer inflation slowed in March, as food prices continued to moderate. The consumer price index (CPI) rose 6.1% from a year earlier, after a 6.3% increase in February, Statistics SA said.
Food inflation continued to slow, with the food and nonalcoholic beverages index rising 8.7% from a year earlier, after a 9.9% increase in February — which was its first month in single digits since April 2016. Food inflation is moderating as the effects of a long, severe drought have eased in many parts of the country.
Excluding beverages, food prices also rose 8.7% in March from a year earlier, after February’s 10% increase.
CPI has spend most of the past year outside the Reserve Bank’s 3%-6% target range, and could head higher in April, after the rand took a knock from President Jacob Zuma’s Cabinet reshuffle.
Fuel prices, another key driver of inflation, rose 15% year on year in March but fell 0.4%. Petrol prices rose 29c a litre in February, but fell again in March, by 8c/l.
An incrase of more than 50c is expected for April, however, and motorists are also having to digest higher fuel and Road Accident Fund levies. Former finance minister Pravin Gordhan announced a 30c/l fuel levy hike and a 9c/l RAF levy increase in his February budget presentation. These took effect on April 1, and their effects will be seen in the next CPI release.
Compared with a month earlier, CPI rose 0.6% in March.
News Category
- International retailers
- On the move
- Awards and achievements
- Legislation
- Wine and liquor
- Africa
- Going green
- Supplier news
- Research tools
- Retailer trading results
- Supply chain
- Innovation and technology
- Economic factors
- Crime and security
- Store Openings
- Marketing and Promotions
- Social Responsibility
- Brand Press Office
Related Articles
![](/templates/yootheme/cache/78/Stokvel_small-78d24857.jpeg)
Empowering South African households through gro...
![](/templates/yootheme/cache/4a/Shopping_trolley_food_prices_small-4aec7a4d.jpeg)
SPAR shares practical tips to beat food inflation
![](/templates/yootheme/cache/03/Petrol_pump_small-03f2da80.jpeg)
South African motorists could be paying up to R...
![](/templates/yootheme/cache/60/VAT_small-607f36c7.jpeg)
Big VAT changes on the cards
![](/templates/yootheme/cache/03/Petrol_pump_small-03f2da80.jpeg)