The Annual Consumer Price Inflation (CPI) has eased to 6.8% in April from 7.1% in March. This is the lowest reading since May 2022, when the rate was 6.5%.
The latest data from Statistics South Africa data shows that CPI eased in April but still remained outside the Reserve Bank’s target band of 3% – 6%.
On a monthly basis, the CPI increased by 0,4% in April.
Once again food and non-alcoholic beverages remained the largest contributors adding 2.4% points.
In a statement, Stats SA says annual inflation for food and non-alcoholic beverages eased to 13.9% in April from 14.0% in March.
The statement further adds that “The bread and cereals price index increased by 20.8% in the 12 months to April, slightly higher than March’s reading of 20.3%, but lower than the recent peak of 21.8% recorded in January.”
“The milk, eggs and cheese product group recorded an annual price increase of 14.5%, the largest rise in 14 years. The average price of a 2-litre carton of fresh full-cream milk increased from R30.14 to R35.88 in the 12 months to April. Over the same period, the average price of a kilogram of cheddar cheese climbed from R118.24 to R135.11 and a tray of six eggs from R20.38 to R21.59.”
It is largely expected that the Reserve Bank will increase interest rates on Thursday when it announces the Monitoring Policy Committee’s decision as inflation remains elevated.
Annual #CPI inflation eased to 6,8% in April from 7,1% in March. This is the lowest reading since May 2022 when the rate was 6,5%.
Listen here for more: https://t.co/ZObC4yE9HZ#StatsSA #inflation pic.twitter.com/6WdF6qZOYF
— Stats SA (@StatsSA) May 24, 2023
