October inflation surprises with another increase

Statistics South Africa (Stats SA) on Wednesday confirmed that inflation rose to 7.6% in October.

The 0.4% increase came as a surprise as economists had expected it to ease.

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of consumer goods and services.

The October CPI was up from 7.5% in September this year. The 0.4% increase is slightly higher from the 0.1% month-on-month increase in September 2022.

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According the report released by the country’s statisticians, the main contributors to the increase were food and non-alcoholic beverages, housing and utilities as well as transport.  

Food and non-alcoholic beverages

Food and non-alcoholic beverages increased by 12% year-on-year and contributed 2.1 percentage points to the CPI annual rate of 7.6%.

In September, food and non-alcoholic beverages increased by 11.9% year-on-year, and contributed 2.0 percentage points to the total CPI annual rate of 7.5%.

Housing and utilities

In September, statisticians recorded that housing and utilities increased by 4.2% year-on-year, and contributed 1.0 percentage points. In October, they found that housing and utilities increased by 4.3% year-on-year, and contributed 1.1 percentage points. 

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Transport

Transport, with the largest increase, went up by 17.1% year-on-year, and contributed 2.4 percentage points. Transport continues to be a bane to the budgets of most South Africans.

October proved better than September, which saw transport costs increase by 17.9% year-on-year, and contributed 2.5 percentage points.

Miscellaneous goods and services increased by 4.8% year-on-year, and contributed 0.7 of a percentage point. In October the annual inflation rate for goods was 10.5%, down from 10.7% in September; and for services it was 4.6%, up from 4.3% in September.