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CPI falls to 4% in January from 4.5%

Statistics South Africa says headline consumer inflation fell to 4% year on year in January from 4.5% in the previous month.

Picture: Pixabay.com

CAPE TOWN - South Africa's headline consumer inflation fell to 4% year on year in January from 4.5% in the previous month, data from Statistics South Africa showed on Wednesday.

On a month-on-month basis, prices fell 0.2% in January from a decrease of 0.2% in December.

Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, was at 4.4% year on year in January from 4.4% in December.

On a month-on-month basis, core inflation was at 0.2% in January from 0.3% in December.

Stats SA’s Patrick Kelly says the major reason for the decline in inflation was lower fuel prices.

“Fuel has a weighty share of 4.6 of the total CPI. It means changes in the fuel price easily influence the month to month changes in the headline figure. A per litre decrease of R1.54 in diesel and R1.23 in petrol resulted in a 10.2% monthly decrease.”