As we edge closer to bidding farewell to 2024, let’s take a moment to reflect on the month of July. It was a quieter period for Stats SA after a bustling June, with only 22 publications released. However, the data we received provided some intriguing insights into South Africa’s economic landscape, particularly in terms of inflation trends, biodiversity-based tourism, and telecommunications.
Consumer Inflation Eases
One of the standout stories was the moderation in consumer inflation, which softened to a six-month low of 5.1% in June, down slightly from 5.2% in May. This deceleration marks the lowest rate since December 2023, a welcome respite for consumers grappling with the rising cost of living. The easing was largely driven by a slowdown in the inflation of food and non-alcoholic beverages (NAB). Categories such as sugar, sweets & desserts, vegetables, fruit, milk, eggs & cheese, and fish all saw lower annual rates, providing some relief to household budgets. However, not all was smooth sailing, as inflation crept up for items like hot beverages, bread & cereals, oils & fats, cold beverages, and meat.
Fuel prices also played a crucial role in this overall softening. With a litre of inland 95-octane petrol costing R24.25 in June, down from R25.49 in May, there was a significant drop in fuel costs, pulling down overall transport inflation. This decline is a far cry from the record high of R26.74 in July 2022, offering some much-needed relief at the pumps.
Exploring Biodiversity-Based Tourism
July also brought fresh insights into South Africa’s biodiversity-based tourism sector, a first for the country. This niche tourism market, which encompasses activities linked to natural ecosystems and indigenous species, was responsible for 13.3% of all tourism activity in 2019. The report highlighted that domestic tourists spent most on passenger transportation services, while inbound visitors splurged on sports and recreational activities. It’s fascinating to see how our rich biodiversity not only attracts tourists but also significantly contributes to our GDP and employment.
Telecommunications in Transition
The telecommunications sector also featured prominently in the economic wrap-up. In 2022, telecommunications services raked in R254 billion, with mobile voice services being the largest contributor. The sector has seen considerable change since 2019, with a noticeable shift from ADSL to fibre-optic broadband. Traditional postal services continue their decline, giving way to the rise of courier services and modern messaging apps. Interestingly, SMS services, although significantly reduced, still generated R1.5 billion in 2022, down from R3.4 billion in 2019.
A Mixed Bag in Economic Indicators
The economic indicators for May painted a mixed picture. While sectors like mining, manufacturing, electricity generation, and construction experienced a downturn, there were bright spots in tourist accommodation, restaurants, catering & fast-food, and rail transport. This varied performance highlights the complex and ever-changing nature of our economy.
Looking Ahead to August
As we look forward to August, there are some key releases to watch out for. The latest employment and unemployment data will be published on 13 August, followed by government financial data for extra-budgetary accounts and funds (EBAs) on 29 August. These include crucial entities like the Road Accident Fund and the Unemployment Insurance Fund, providing vital insights into our public finances.
Stay tuned for more updates as we continue to navigate the economic landscape of 2024. For those eager to delve deeper into these data points, I encourage you to explore Stats SA’s publication schedule and data story feed for a wealth of information. Let’s make the most of the remaining months of 2024 and keep pushing forward, informed and engaged. For a comprehensive list of products and releases, download the latest edition of the Stats Biz newsletter. Stay informed, and stay ahead.