Consumer inflation slows more than expected in January
Consumer price index data show inflation slowed in January after steadily accelerating for four months to peak at 6.8% in December
Inflation, as measured by the consumer price index (CPI), moderated to 6.6% in January from December’s 6.8%. This was better than the economists’ consensus of 6.7%. The change in CPI is the key measure used by the Reserve Bank’s monetary policy committee to set interest rates. The index, which was reset to 100 points in December, came in at 100.6 points for January, Statistics SA reported on Wednesday. After falling back under the Reserve Bank’s ceiling of 6% in August, inflation steadily accelerated for four months to peak at 6.8% in December. The food component of CPI showed inflation of 11.8% in January from the same month in 2016. The highest inflation in Stats SA’s basket of goods used to calculate CPI was sugar, sweets and deserts whose average price rose 21.4% over the year. Bread and cereal inflation — a main driver behind SA’s overall inflation due to a severe drought — moderated to 17%. Average meat prices increased 8.9%, fruit 11.2% and vegetables 4.7%. The only item in t...
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