February inflation rate remains at 5.7% despite large increases in price of maize, bread and fish

The February inflation rate remained at 5.7% despite large increases in the price of maize meal, white bread and fish.

The annual inflation rate was unchanged from 5.7% in January.

However, increasing food and transport prices put upward pressure on the monthly rate, with the consumer price index (CPI) increasing by 0.6% between January and February.

According to Statistics SA, annual food and non-alcoholic beverages inflation continued to increase in February from 5.7% in January and 5.5% in December to 6.4%.

Although the annual price of bread and cereals decreased steadily for eight months, it suddenly jumped to 3.7% in February from 1.5% in January.

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Food price increases

The category for bread and cereals includes grain-based foods made from wheat, rice and maize.

The monthly change was significant because prices increased by 2.4% between January and February, one of the biggest monthly increases for this category since the beginning of 2019.

The most notable increases for staples were the prices of maize meal which increased 3.7% and white bread that increased by 3.2%.

This means that consumers paid on average 69 cents more for a loaf of white bread in February when it cost R16.16 than in January when they paid R15.47.

Large price increases were also noted in ready-mix flour and cake flour, where the price for both increased by 4.7%, pasta that increased by 4.1% and porridge and macaroni with price increases of 2.9% each.

The price of brown bread increased by 2.5%.

These increases happened before the war in Ukraine started.

With Russia and Ukraine exporting the most maize and wheat in the world, supply can be affected and therefore Statistics SA says it will keep a close watch on prices in the bread and cereals category.

The price of fish also increased sharply by 2.3% between January and February, with tinned fish (excluding tuna) and frozen fish fingers recording the largest monthly increases.

Food and non-alcoholic beverages increased by 6.4% year-on-year and contributed 1.1 percentage points to the total CPI annual rate.

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Fuel price increase

The fuel price increase of 2.9% in February, after softening in January also showed how much consumers have to deal with.

They now paid 53c more for inland 95-octane petrol than in January, to reach R20.14 per litre although it was less that the record high of R20.29 in December.

It is therefore no surprise that large monthly price increases were recorded for public transport services, in particular air fares, that increased by 7.3% and car rental, up by 15.0%.

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Health and insurance cost increases

Another blow for consumers was an increase in health costs.

Statistics SA conducts an annual survey of private-sector doctor and dentist fees each February.

In the previous 12 months to February, health prices increased by 4.9%, with prices for general practitioners increasing by 5.6%, gynaecologists and physicians by 4.5%, and dentists by 4.7%.

The insurance category also registered a monthly change of 1.3%, mainly due to an increase of 1.7% in health insurance.

However, not all health insurance companies change their prices during February and Statistics SA will capture these prices in April, May and September.

ALSO READ: January’s inflation easing gives consumers a little more breathing room

Other main contributors to inflation rate

Other main contributors to the annual inflation rate were housing and utilities, transport and miscellaneous goods and services.

Housing and utilities increased by 4.4% year-on-year, contributing 1.1 percentage points.

Transport increased by 14.3% year-on-year and contributed 1.9 percentage points, while miscellaneous goods and services increased by 3.2% year-on-year and contributed 0.5 of a percentage point.

In February, the annual inflation rate for goods was 8.1%, unchanged from January and for services the rate declined from 3.4% in January to 3.1% in February.

Other main contributors to the annual inflation rate were housing and utilities, transport and miscellaneous goods and services.

Housing and utilities increased by 4.4% year-on-year, contributing 1.1 percentage points.

Transport increased by 14.3% year-on-year and contributed 1.9 percentage points, while miscellaneous goods and services increased by 3.2% year-on-year and contributed 0.5 of a percentage point.

In February, the annual inflation rate for goods was 8.1%, unchanged from January and for services the rate declined from 3.4% in January to 3.1% in February.