Consumer price inflation for March softens to 5.3%

JOHANNESBURG - Following a two-month upswing, headline inflation softened to 5.3% in March, down from the 5.6% seen in February.

The rate, which measures the change in prices in a basket of goods, has held its ground between 5% and 6% since September last year.

Stats SA released the latest inflation reading on Wednesday morning.

It comes on the back of a mixed outlook, with economists divided on what to expect.

The categories with the highest annual price changes in March include miscellaneous goods & services, education, health, as well as housing and utilities.

Stats SA chief director for price statistics, Patrick Kelly: "Categories with the highest annual price changes in March were miscellaneous goods and services, education, health and housing and utilities. Stats SA surveys education fees once a year in March. Education was 6.3% more expensive in 2024 than it was in 2023."

Stats SA says softer food prices have helped to ease the annual consumer price inflation for March.

The deceleration was driven by a decline in prices for food and non-alcoholic beverages.

This category came in at its lowest annual rate in more than three years.

Kelly also said the inflation for food and non-alcoholic beverages in March was three times lower than its peak of 14% exactly a year ago.

“Bread flour, pasta, rusks, maize meal, ready-mix flour and white bread are cheaper than a year ago. Meat inflation also cooled in March on the back of lower beef and mutton prices.

“The annual rate for meat in March was 0,8%, significantly lower than the recent peak of 11,4% in February 2023. Annual inflation for sugar, sweets & desserts has remained above the 15,0% level since June 2023.”