Consumer Price Index slows down

Image courtesy of stock.xchng (Christian Ferrari).

The Consumer Price Index (CPI) for all urban areas slowed down to 5.5 percent in October 2013, Statistics SA said on Wednesday.

“This rate was 0.5 of a percentage point lower than the corresponding annual rate of six percent in September 2013,” Stats SA said in its report.

“On average, prices increased by 0.2 percent between September 2013 and October 2013.”

The food and non-alcoholic beverages index increased by 0.9 percent between the two months, while the annual rate decreased to 4.3 percent in October from 5.9 percent in September 2013.

Food and non-alcoholic beverages components of the index that increased included vegetables, meat, milk, eggs and cheese, cold beverages, bread and cereals, and fish.

The components that decreased included sugar, sweets and desserts, oils and fats, fruit, and hot beverages.

The transport index decreased by 0.3 percent between September 2013 and October 2013.

“Mainly due to a 19c/litre decrease in the price of petrol,” Stats SA said.

“The annual rate decreased to 6.2 percent in October 2013 from 6.9 percent in September 2013.”

According to Stats SA, the communication index increased by 0.5 percent between September 2013 and October 2013 and the annual rate increased to 2.2 percent in October 2013 from 1.7 percent in September 2013.

Investec group economist Annabel Bishop said the CPI was below expectations of 5.8 percent.

“There was no evidence of rising demand pressures or second round effects, with the small 0.2 percent month-on-month increase driven by slightly higher food prices in October, and a small residual effect,” she said in a statement.

“The 20c/litre petrol price cut in October helped to moderate the targeted measure of inflation and the petrol price fell by 28c/litre in November. This will assist in moderating CPI further in that month.”

– Sapa

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