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South Africa inflation breaks 4 year high

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Staff Writer

Johannesburg | Annual consumer inflation in South Africa reached its highest level in more than four years in November 2021, owing primarily to growing transportation expenses.

  • Compared to October and September, the annual change in the Consumer Price Index (CPI) was 5.5 percent.
  • According to a report from Statistics South Africa on Wednesday, this is the largest annual increase since March 2017 when the rate was 6.1%, when it was 6.2%.
  • To put it simply, transportation was the only item that contributed to the monthly increase in CPI and accounted for 2.1 percentage points to increase the annual inflation rate by 5.5%. By November, the annual rate of growth in fuel prices was 34.5 percent, up 7.1 percent from October.
  • Despite the headline rate of 5.5%, the annual change in the CPI excluding fuel index was only 4.2% in November, according to the South African Statistics Agency (StatsSA). Tariffs for public transportation rose by 1.7 percent each month and 8.3 percent annually.

Compared to October and September, the annual change in the Consumer Price Index (CPI) was 5.5 percent. According to a report from Statistics South Africa on Wednesday, this is the largest annual increase since March 2017 when the rate was 6.1%, when it was 6.2%. (15 December).

In November, the annual rate of inflation in the transportation sector rose by a whopping 15 percent. South Africa’s Reserve Bank’s monetary policy target range has an upper limit of 6 percent, and this is the only major group in the inflation basket with an annual rate higher than that.

To put it simply, transportation was the only item that contributed to the monthly increase in CPI and accounted for 2.1 percentage points to increase the annual inflation rate by 5.5%.

By November, the annual rate of growth in fuel prices was 34.5 percent, up 7.1 percent from October. When it comes to 95-octane inland gasoline, the price was R19,54 a gallon in November 2021 (R14,59 in November 2020).

Over the same period, the diesel index rose by 35.1%. It cost R18.75 per liter of diesel in November 2021, up from R13.89 per liter in the same month of the previous year.

Statistics South Africa released a chart showing how fuel expenses relate to inflation in order to illustrate the impact of rising fuel prices.

Overall inflation would be lower if the cost of transportation fuels were not included in the CPI. When the headline CPI does not closely match the CPI excluding fuel, there is a notable influence on overall inflation from changes in the price of oil and gas.

Compared to the CPI without fuel, headline inflation in 2021 was on average higher, illustrating the impact of increased fuel prices. Despite the headline rate of 5.5%, the annual change in the CPI excluding fuel index was only 4.2% in November, according to the South African Statistics Agency (StatsSA).

Tariffs for public transportation rose by 1.7 percent each month and 8.3 percent annually. On average, the cost of a vehicle has increased by 5.6 percent since November 2020.”

Staff Writer

Published by
Staff Writer