South Africa’s consumer price inflation eased more than anticipated in September, falling to 3.8 percent year-on-year, the lowest rate recorded in three and a half years. This decline, attributed primarily to lower transportation costs, was revealed in data from Statistics South Africa released on Wednesday.
In August, inflation stood at 4.4 percent, with economists predicting a decrease to 3.9 percent. The latest figures represent the most significant drop since March 2021, when inflation was measured at 3.2 percent.
Furthermore, the inflation rate continues to remain below the Reserve Bank’s target midpoint of 4.5 percent. Core inflation, which excludes prices for non-alcoholic beverages, fuel, and energy, held steady at 4.1 percent.
Transportation expenses decreased by 1.1 percent compared to the previous year, largely due to a notable 9.0 percent reduction in fuel costs. In contrast, food and non-alcoholic beverage prices saw an annual increase of 4.7 percent, while housing and utility costs rose by 4.8 percent.
On a month-to-month basis, consumer prices increased slightly by 0.1 percent, while core consumer prices rose by 0.3 percent.
