The lower fuel price had a lot to do with the lower inflation rate in September, although this could change soon.
Inflation cooled again for a fourth consecutive month, easing to 3.8% in September from 4.4% in August. This is the lowest inflation print since March 2021, when the rate was 3.2%.
According to Statistics SA, the decrease was mainly thanks to transport inflation that keeps decreasing, while food inflation remined unchanged. Prices increased on average by 0.1% between August and September 2024.
Softer transport inflation and specifically lower fuel prices was the main drag on the headline rate. The transport category entered deflationary territory for the first time in 13 months, with the annual rate falling from 2.8% in August to -1.1% in September.
Fuel prices decreased for a fourth successive month and are on average 9.0% lower than a year ago. A litre of inland 95-octane petrol cost R22.19 in September, the lowest price since February 2023 when it was R21.68.
Price increases for vehicles also slowed and the annual rate was 3.6% in September 2024, down from a high of 8.4% in September 2023.
ALSO READ: Inflation now expected to average 5.1% this year
Food and alcoholic beverages unchanged at 4.7%
Statistics SA says annual food and non-alcoholic beverages inflation was 4.7% in September, unchanged from August, with softer annual rates recorded for hot beverages, meat, bread and cereals, sugar, sweets and desserts and oils and fats.
Hot beverages continued to register the highest annual rate among all food and non-alcoholic beverages categories at 15.8%, despite a cooler rate in September when compared to August’s 17.5%.
Vegetables, fruit, cold beverages and fish recorded cost more in September, while inflation for milk, eggs and cheese was stable.
Statistics SA says on a month-on-month basis, the food and non-alcoholic beverages price index increased by 0.6% in September compared to August, the highest monthly increase since January this year, when the rate was also 0.6%.
The alcoholic beverages and tobacco category registered an annual rate of 4.7%, up from 4.3% in August. Beer prices increased by 5.2%, spirits by 4.3% and wine by 4.0% in the 12 months to September.
This graph shows food and beverage products that recorded the most significant annual and monthly price increases in September, with tomatoes, condensed milk, eggs and instant coffee continuing to witness high annual price increases:
ALSO READ: Reserve Bank governor wants lower inflation target
Housing rentals 3.3% in third quarter
The September consumer price index (CPI) release also finalises the housing rental survey for the third quarter of 2024. The annual rate for actual rentals was 3.3% in the third quarter, up from 3.2% in the second quarter and 2.9% for imputed rentals, up from 2.8%. The rate for flat rentals was 4.1%, for townhouses 3.8% and for houses 2.8%.
Domestic worker wages (also surveyed quarterly) increased by an annual 4.1% in the third quarter compared to the annual increase of 3.9% recorded in the second quarter.
