1 minute read
20 Aug 2014
11:46 am

Consumer Price Index lower in July

The consumer price index (CPI) for all urban areas was 0.3 percent lower in July compared to June, Statistics SA said on Wednesday.

Picture: AFP.

The CPI was 6.3 percent compared to 6.6 percent in June.

On average, prices increased by 0.8 percent between June and July this year.

With most municipalities introducing new tariffs in July each year, this resulted in housing and utilities contributing 0.5 of the 0.8 percent price increase.

Electricity tariffs increased seven percent, slightly lower than the maximum 7.4 percent stipulated by the National Energy Regulator of SA.

Water and assessment rates, which are not regulated, increased more, at 9.2 percent and 7.2 percent respectively.

The petrol price increased by a moderate 29 c/l in July, which brought the annual increase in petrol down to 8.3 percent, from the short-term peak of 14.3 percent seen two months ago.

Last July, the annual increase in the petrol price was 22.6 percent.

Food inflation appeared to be moderating as prices dropped from last month in the bread and cereals (one percent), meat (0.3 percent) and fats and oils (1.4 percent) categories.

The drops were largely as a result of improved harvests of grains (maize and wheat) and oil-bearing plants (sunflowers). Maize forms a large part of the feed for cattle and chickens.

Cigarette prices showed a 3.7 percent monthly spike, bringing the annual increase for tobacco products to 7.2 percent. The increase appeared to be a late implementation of increases in excise taxes, related to the introduction of new stock.