October inflation surprises with another increase
Food and non-alcoholic beverages were a main contributors to the increase in inflation in October.
Image: iStock
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.
ALSO READ: Inflation down while CPI up in September 2022
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.
ALSO READ: South Africans feeling the pain as inflation reaches 13-year high
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.
For more news your way
Download our app and read this and other great stories on the move. Available for Android and iOS.