Consumer price inflation (CPI) remained unchanged at 3.2% in February, holding steady from January. This marks the fourth consecutive month that inflation has stayed above the four-and-a-half-year low of 2.8% recorded in October. Meanwhile, the Consumer Price Index registered a monthly increase of 0.9% in February.
Independent Economic Analyst Professor Bonke Dumisa explained that the latest CPI figures provide an accurate reflection of inflation trends in South Africa.
“The Consumer Price Index, as released, accurately represents the current inflation environment. There’s often debate about whether these figures truly reflect the reality on the ground, but in this instance, they do,” he said.
Professor Dumisa highlighted the significant impact of housing and utilities on the overall CPI, stating, “When we analyze the data, we see that housing and utilities contribute about 4.4% to the index. This is particularly evident when considering the recent tariff adjustments agreed upon by the National Energy Regulator of South Africa (NERSA), Eskom, and local municipalities. These new rates for water and electricity are, in part, driving up the annual inflation rate.”
While inflation remains relatively stable, the rising cost of essential services such as housing and utilities continues to be a concern for South Africans.
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