Consumer inflation slows as food prices moderate
February CPI inflation came in much as expected, though food inflation did not fall as far as some had expected
Consumer inflation slowed in February, as food inflation moderated, but remained outside the Reserve Bank’s 3%-6% target range. The consumer price index (CPI) rose 6.3% in February compared with a year earlier, Statistics SA said on Wednesday. That compares with 6.6% in January. Food inflation, which was expected to fall back into single digits after running rampant last year as a result of a severe drought across SA, met those expectations by a whisker. Food and nonalcoholic beverages inflation came in at 9.9% year on year in February — but inflation for food alone was 10%. NKC Economics senior economist Elize Kruger forecast food inflation of 9.3% for February. Food was one of the main drivers of high consumer inflation last year — CPI growth was outside the Reserve Bank’s 3%-6% target range in for most of the year — but economists agree that the factors pushing up inflation last year will improve this year. Nonetheless, Finance Minister Pravin Gordhan’s budget statement last mont...
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