CPI eased to 4% in July from 4.5% in June

Statistics South Africa (Stats SA) said on Wednesday that real consumer price inflation (CPI) declined to 4% in July from a 4.5% in June.

The agency said this was the lowest CPI headline rate since January when it also stood at 4%.

Stats SA said a drop in fuel prices and increases in municipal tariffs were the key price drivers during the month.

Fuel prices edged lower in July, dragging annual transport inflation down to 3% from 5.5% recorded in June, Stats SA said.

The price of a litre of 95 petrol was R15.81 in July falling from R16.76 in June and also lower than the R16.02 per litre motorists were paying in July 2018, the agency said.

The agency said most municipalities increase their tariffs in July, recording the following tariff increases:

• Electricity tariffs went up by 10.5 %, higher than last year’s rise of 6.8%;
• water tariffs went up by  10.3%, slightly lower than the 11.8% registered in 2018 and
• municipal rates were up by 6.3%, also lower than 2018’s 14.8%.

Stats SA said the annual food and non-alcoholic beverages inflation was 3.4% in July, a decline from June’ s 3.7%.

Prices for bread and cereal products continued to increase, registering an annual rise of 7.9%, which was slightly higher than June’s 7.3%, the agency added.

Stats SA said meat prices increased by 0.2% annually compared to June’s 0.3%.

(Compiled by Makhosandile Zulu)

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