Inflation up again in March due to high food prices

Inflation increased again in March due to high food and transport prices from 7,0% in February and 6,9% in January to 7,1%.

This was the most significant monthly increase since July 2022 when it was 1,5%.

According to Statistics SA, that announced the March inflation rate today, food inflation continues to accelerate, with prices increasing by 14,0% in the 12 months to March, the largest annual increase since the 14,7% increase 14 years ago in March 2009.

The prices of various food items increased, including milk, eggs, cheese, sugar, sweets, desserts, fruit and vegetables, while the product category ‘other food products’ also experienced upward inflationary pressure.

The annual rate for milk, eggs and cheese reached 13,6% from the recent low of 3,7% in April 2022, the highest annual increase since February 2009 when it was 13,9%.

Bread and cereals, meat, oils and fats and fish recorded slower growth. The annual increase for bread and cereals was 20,3% in March, down from 20,5% in February, while meat inflation edged lower to 10,6% from 11,4% in February.

The price of oils and fats decreased for a seventh successive month, dragging the annual rate to 16,0% from 16,7%.

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Transport inflation

Transport inflation decreased thanks to lower fuel prices.

The transport index increased by 8,9% in the 12 months to March, down from the 9,9% annual rate recorded in February.

The downward shift was due to eight consecutive months of slowing fuel inflation, which reached 8,1% in March from 10,9% in February, much lower than the 56,2% peak in July 2022.

However, fuel prices increased by 4,5% between February and March, mainly due to the price of inland 95-octane petrol increasing by R1,27 per litre.

This month’s data also included education fees which are surveyed once a year in March. Overall, fees increased by 5,7% in 2023, which was higher than the 4,4% increase recorded in 2022.

Fee increases were recorded for primary and pre-primary schools (up 6,3%), secondary schools (up 5,8%) and tertiary institutions (up 5,3%).

Other education-related products and services that recorded price increases include crèches (up 4,6%), university boarding fees (up 6,7%), textbooks (up 11,3%) and school bags (up 10,6%). The 11,3% increase in the price of textbooks is the largest annual increase since October 2009 when it was 12,0%.

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Other notable price changes

Other notable price changes in March included new sin taxes, housing rentals, household contents and services, domestic worker wages and personal care items.

The new excise taxes for alcohol and tobacco products came into effect in March and contributed to a monthly increase of 2,2%, but the annual rate dropped slightly to 6,2% from 6,3% in February.

The inflation rate for March also included data for the first quarter survey of housing rentals and showed that annual inflation for actual rentals was unchanged from December at 2,5%, while owner-occupied housing was 2,7% compared to December’s reading of 2,8%.

Inflation for household contents and services rose to 6,9% in March from 6,2% in February, the highest annual increase since June 2009 when it was 7,0%, with prices for appliances, tableware and equipment increasing by 7,7%.

Wages for domestic workers increased by 1,2% in March from December, a 5,2% annual rise that was the highest since February 2019 when the same rate was recorded.

Prices for personal care items increased by 11,1% in the 12 months to March, the highest annual rate since the 12,0% recorded in October 2009.