Inflation rate decreases for third time in January

Inflation decreased for the third time in January, by 0,3% to 6,9%, down from 7.2% in December, which is good news for people with debt as the inflation rate is getting closer to the Reserve Bank’s upper target band of 6%, making it less likely for large increases in the repo rate.

In 2022, annual inflation averaged 6.9% from an average of 4.5% in 2021, the highest level since 2009 when it was 7.1%, but still notably lower than the 11.5% recorded in 2008.

The main contributors to the 6,9% annual inflation rate were food and non-alcoholic beverages, housing and utilities, transport and miscellaneous goods and services. 

Food and non-alcoholic beverages increased significantly by 13,4% compared to January 2022, contributing 2,3 percentage points to the total, while housing and utilities increased by 4,1% year-on-year, contributing 1 percentage point. 

Transport increased by 11,1% in January compared to January last year and contributed 1,6 percentage points. Miscellaneous goods and services increased by 4,8% year-on-year, contributing 0,7 of a percentage point. 

The annual inflation rate for goods was 9,5% in January, down from 10,1% in December, while it remained unchanged at 4,3% for services.

The consumer price index decreased by 0,1% in January compared to December.

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