Why is everything expensive? Here’s why

If it feels as if everything costs more, you’re correct.

Statistics SA yesterday announced the country’s annual consumer price inflation (CPI) was 3.7% in October – down from 4.1% the previous month.

Which means that while prices were still going up, the rate at which they were increasing, had slowed marginally.

All the data presented refers to urban areas.

“The main contributors to the 3,7% annual inflation rate were food and non-alcoholic beverages; housing and utilities; and miscellaneous goods and services,” statistician-general Risenga Maluleke said in the report.

Other increases were food and non-alcoholic beverages by 0.6%, and housing and utilities by 4.8% year-on-year while the annual inflation rates for goods and for services were 3.1% and 4.2% respectively.

If things still feel a lot more expensive than last year, it’s because the CPI for all goods was up by 3.1% compared to October 2018.

Fuel was down 4.9%, compared to October 2018 while running costs for private transport went up by 4.5%.

Products and services which increased since October last year were food at 3.5%, bread and cereals by 8.5%, fish by 7.5%, water by 7.1% and electricity by 11.8%.

Overall, however, Stats SA noted last month’s inflation rate was the lowest in more than eight years.

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