For the third consecutive month, annual consumer inflation in October continued its upward trajectory, nearing the upper limit of the South African Reserve Bank’s inflation target range. The headline rate reached 5.9%, up from 5.4% in September.
Consumer prices increased on average by 0.9% between September and October, the highest monthly rise in three months.
The biggest contributors to the uptick in inflation were food and non-alcoholic beverages and transport costs, according to data derived from Statistics South Africa.
The inflation rate for food and non-alcoholic beverages (NAB) experienced a second consecutive monthly increase, reaching 8.7% in October, up from 8.1% in September and 8.0% in August. This 1.5% monthly surge represents the highest since January of this year, which recorded a 1.8% increase.
Poultry-related products, including eggs, have faced heightened upward price pressure, primarily attributed to the outbreak of avian flu. The culling of millions of chickens has led to market shortages, prompting anxious consumers to engage in panic buying.
Transport inflation quickened to 7,4% from 4,2% in September. The rise was mainly due to a 6,5% monthly increase in the fuel price, taking the annual rate to 11,2% from 1,5% in September.
In October, the price of inland 95-octane petrol climbed to R25.68 per litre, up from R24.54 per litre in September, marking the second-highest petrol price on record, just below the peak of R26.74 charged in July 2022.
On a different note, vehicle inflation, encompassing prices of both new and used motor cars, saw a slight easing to 7.8% from 8.4% in September.
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