September brought some great news as annual consumer inflation dipped for the fourth consecutive month, settling at 3.8%, down from 4.4% in August. This marks the lowest inflation rate since March 2021, when it was recorded at 3.2%. Overall, prices increased by a mere 0.1% between August and September 2024, signalling a slow but steady easing of pressure on consumers.
Transport inflation continues to ease
One of the key contributors to this positive trend is the easing transport inflation, driven primarily by lower fuel prices. For the first time in 13 months, the transport category entered deflationary territory, with the annual rate plummeting from 2.8% in August to an impressive -1.1% in September. Fuel prices have seen a continuous drop for four months now, averaging 9.0% lower than a year ago. In September, a litre of inland 95-octane petrol cost R22.19, the lowest price since February 2023, when it was R21.68. Additionally, the annual price increase for vehicles has moderated to 3.6%, down from a high of 8.4% in September 2023.
Annual food inflation unchanged
Annual food & non-alcoholic beverages (NAB) inflation was 4,7%, unchanged from August. Softer annual rates were recorded for hot beverages; meat; bread & cereals; sugar, sweets & desserts; and oils & fats. Hot beverages continued to register the highest annual rate among all food & NAB categories (at 15,8%), despite a cooler rate in September when compared with August’s 17,5%. Vegetables, fruit, cold beverages and fish recorded higher rates in September. Inflation for milk, eggs & cheese was stable.
On a month-on-month basis, the food & NAB price index increased by 0,6% in September compared with August. This is the highest monthly rise since January this year, when the rate was also 0,6%.
The alcoholic beverages & tobacco category registered an annual rate of 4,7%, up from 4,3% in August. Beer prices increased by 5,2%, spirits by 4,3% and wine by 4,0% in the 12 months to September.
The graphs below show food and beverage products that recorded the most significant annual and monthly price increases in September. Tomatoes, condensed milk, eggs and instant coffee continue to witness high annual price increases.
Other notable price changes in September
The September consumer price index (CPI) release finalises the housing rental survey for the third quarter of 2024. The annual rate for actual rentals was 3,3% in the third quarter (up from 3,2% in the second quarter) and 2,9% for imputed rentals (up from 2,8%). The rate for flat rentals was 4,1%, for townhouses 3,8% and for houses 2,8%.
Domestic worker wages (also surveyed quarterly) rose by an annual 4,1% in the third quarter. This is up from an annual increase of 3,9% recorded in the second quarter.