Zuko Komisa

South Africa’s consumer inflation rate has dipped to its lowest level since June 2020, providing a welcome sign of relief for consumers.
According to recent data from Statistics SA, this significant decline is primarily attributed to a notable decrease in fuel prices and a moderation in the rate at which tuition fees are increasing.
“The annual rate for food & non-alcoholic beverages (NAB) edged lower to 2,7% in March from 2,8% in February. Vegetables, fruits & nuts, cereal products, meat and fish registered higher annual rates. Lower rates were recorded for oils & fats; hot beverages; milk, other dairy products & eggs; cold beverages; and sugar, confectionery & desserts.
Inflation for cereal products accelerated to 4,3% in March from 3,9% in February. Maize meal remains a key driver in this category, with its annual rate accelerating to 13,1% from 10,6%. There is some good news, however. Monthly increases for maize meal have recently slowed, from 4,8% in January to 2,4% in February and 1,4% in March.” said StatsSA
Annual consumer price inflation was 2,7% in March, down from 3,2% in February.
— Statistics South Africa (Stats SA) (@StatsSA) April 23, 2025
Listen here for more: https://t.co/VsbVvGJ3vW#StatsSA #CPI #GovZAupdates pic.twitter.com/d8JWxVlmTH
This latest inflation index marks a significant shift since the economic climate of mid-2020, a period heavily impacted by the initial waves of the COVID-19 pandemic and associated disruptions. The current downward trend offers a glimmer of hope for households grappling with the rising cost of living experienced over the past few years.
While the report specifically points to fuel and education as primary drivers of this deceleration, the mention of “lower food prices” by Patrick Kelly, Chief Director for Price Statistics, indicates a broader easing of price pressures within the economy.
Reza Hendrickse, Portfolio Manager at PPS Investments explores what this means for interest rates, investor behaviour, and macroeconomic expectations heading into the May MPC meeting.
Listen to the conversation here:
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