Annual consumer price inflation increased by 7.0% in February says Stats SA

Annual consumer price inflation increased for the first time in four months in February. It edged from to 7.0% from 6.9% in January 2023. Statistics SA says this is the biggest monthly hike since July 2022. The continuing rise in food inflation was a major contributor.

In February, the prices of food and non-alcoholic beverage prices were up 13.6% year-on-year – the highest number since April 2009. Onions cost 44% more last month than they did a year ago in February 2022. Maize meal, a staple food, was almost 35% more expensive.

Bruce Whitfield discusses the latest inflation numbers with Kevin Lings, Chief Economist at Stanlib Asset Management.

While it’s not a big inflation jump, Lings believes it is a concern because it’s not in one particular category but fairly broad-based.

I would say the biggest concern is the acceleration in food inflation. That’s up now at 14% and that just doesn’t feel like it’s softening.Kevin Lings, Chief Economist – Stanlib Asset Managementnone

We’ve seen quite a lot of pressure at the producer food level, as obviously manufacturers and retailers struggle with additional costs associated with the loadshedding and want to pass that on.Kevin Lings, Chief Economist – Stanlib Asset Managementnone

It’s all of the factors that the Reserve Bank has been warning about – it starts off to do with let’s say global supply disruption or the oil price, but then if you don’t really get on top of it, can broaden into more categories.Kevin Lings, Chief Economist – Stanlib Asset Managementnone

Source: The Money Show

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