The DA wants the government to cut VAT on certain food items. Image: Pixabay.
LOOK: Consumer Inflation rises for second consecutive month – these are the biggest food increases
Consumer inflation in South Africa rose for the second straight month in March, driven by an increase in food prices.
The DA wants the government to cut VAT on certain food items. Image: Pixabay.
Consumer inflation in South Africa increased for the second consecutive month in March, with food prices being the main contributor to the increase, according to data released by Statistics South Africa (Stats SA) on Wednesday, 19 April.
Food and Non-Alcoholic Beverages Lead the Rise in Inflation
Headline consumer inflation increased to 7.1% in March from 7.0% in February and 6.9% in January. The rise in inflation was driven by food and non-alcoholic beverages and transport costs.
Food and non-alcoholic beverages recorded the most significant annual increase since March 2009, with prices increasing by 14.0% in the 12 months to March. Milk, eggs, cheese, sugar, sweets, desserts, fruit, and vegetables led the increase. Meanwhile, bread and cereals, meat, oils, and fats, and fish bucked the trend and recorded slower growth.
Transport inflation was down in March due to lower fuel prices, dropping to 8.9% in March from 9.9% in February.
“The downward shift was led by eight consecutive months of slowing fuel inflation, which reached 8,1% in March from 10,9% in February. This is much lower than the 56,2% peak in July 2022,” said Stats SA.
Fuel prices rose by 4.5% between February and March, mainly due to the cost of inland 95-octane petrol rising by R1.27 per litre.
Education Fees and Personal Care Items Also Experience Significant Price Increases
Education fees also increased by 5.7% in 2023, which is higher than the 4.4% rise recorded in 2022. Other education-related products and services also recorded price increases.
Inflation for household contents and services rose to 6.9% from 6.2% in February, with prices for appliances, tableware, and equipment rising by 7.7%. Personal care items increased by 11.1% in the 12 months to March, which is the highest annual rate since October 2009.
The data also showed that new excise taxes for alcohol and tobacco products came into effect in March, contributing to a monthly increase of 2.2%. However, the annual rate dropped slightly to 6.2% from 6.3% in February.
Inflation chart
The following chart demonstrates the products that experienced the most significant percentage rises in prices during the month of March.
CLICK HERE TO READ MORE ARTICLES BY STORM SIMPSON
READ:
