Inflation rate for 2023 within range of govt's upper target at 6% - Stats SA

CAPE TOWN - Statistics South Africa released its December report on Wednesday morning, citing the average inflation rate for 2023 was 6%, within range of government’s upper target.

Inflation also ended lower than in 2022, when it neared almost 7%.

The reports have also revealed that annual consumer price inflation (CPI) dropped marginally in December to 5.1% from 5.5% in the previous month. 

The year 2023 started with inflation coming in relatively hot in the first few months of the year when the headline rate was consistently above 6%.

The highest reading of 7.1% was recorded in March.

Inflation then eased off in the last seven months of the year, with the lowest rate of 4.7% recorded in July. 

Stats SA says contributing factors to the annual inflation rate was an increase in food and non-alcoholic beverage prices, the cost of housing and utilities and transport.

Chief director Patrick Kelly: "The 8.5% inflation rate for food and non-alcoholic beverages in December, was lower than November’s 9%."

The consumer price index, however, has remained unchanged month-on-month in December.

This is the measure of the cost of a fixed basket of consumer goods.