Consumer inflation lowest since January - Stats SA

The Consumer Price Index dipped to 7,6% in August from 7,8% in July. 

Statistics South Africa's Patrick Kelly says this is the lowest monthly change since January and comes on the back of lower fuel prices. 

"Fuel prices decreased by 3,8% between July and August, with petrol falling by 5,0% and diesel by 0,9%. This pushed the annual rate for fuel down to 43,2% from 56,2% in July. The welcome decrease in the cost of fuel had an impact on the overall transport index, which declined by 1,0% between July and August." 

Kelly says on the other hand, food inflation kept climbing, and tea and coffee prices skyrocketed. 

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"Bread and cereals registered an increase of 3,1% between July and August, pushing the annual rate from 13,7% to 17,8%. Maize meal increased by 4,8% from July, taking the annual rate to 29,1%1. Brown bread registered a monthly rise of 2,2% and cake flour 3,9%.

"Prices for milk, eggs and cheese increased by 2,1% between July and August. Products with higher than average monthly increases include cheddar cheese (3,1%), low fat milk (2,9%) and full cream milk (2,6%).

He added "Oils and fats hit another annual high – 37,6% in August, up from 36,2% in July. The monthly rate, however, has slowed from its peak of 10,1% in May this year to 1,1% in August."

"Hot beverage prices steamed to their highest annual rate in 64 months at 11,8% (compared with 12,1% in April 2017), stirred up by monthly increases in rooibos tea (7,6%) and instant coffee (3,9%)."