Categories: Economy
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2024-01-24 1:07 PM

South Africa’s Consumer Price Index Shows Slight Dip in December 2023

  • Inflation Trends: South Africa's annual consumer price inflation dipped to 5.1% in December 2023, a marginal decline from November.
  • Contributors to Inflation: Food, housing, and miscellaneous goods led the rise, while the overall economy maintained stability.
  • Economic Outlook: Despite fluctuations, the annual average inflation for 2023 decreased to 6.0%, indicating a stable economic environment.
By Lethabo Ntsoane

Statistics South Africa (Stats SA) released its latest findings on the Consumer Price Index (CPI) for December 2023, revealing a 5.1% annual consumer price inflation, slightly down from November’s 5.5%. The data, embargoed until January 24, 10:00, offers insights into key contributors and trends impacting the nation’s economic landscape.

Key Findings

Annual Inflation and Monthly Stability

  • The headline consumer price inflation for all urban areas stood at 5.1% in December 2023, showcasing a marginal decline from the previous month’s 5.5%.
  • Despite the yearly dip, the CPI remained stable month-on-month in December 2023.

Main Contributors to Inflation Rate

  • Food and non-alcoholic beverages experienced an 8.5% year-on-year increase, contributing 1.5 percentage points to the overall annual inflation rate.
  • Housing and utilities showed a 5.7% year-on-year increase, contributing 1.3 percentage points.
  • Miscellaneous goods and services increased by 5.1%, contributing 0.7 of a percentage point.
  • Transport saw a 2.6% year-on-year increase, contributing 0.4 of a percentage point.

Goods vs. Services

  • In December, the annual inflation rate for goods decreased to 6.4%, down from 7.1% in November.
  • Services maintained stability with an annual inflation rate of 3.8%, unchanged from November.

Annual Average Headline CPI for 2023

  • The average annual consumer price inflation for 2023 was 6.0%, showing a 0.9 percentage point decrease from the 6.9% average in 2022.

Detailed Results

Consumer Price Index: Main Indices (Dec 2021=100)

GroupWeightIndex (Dec 2021=100)% Change Dec 2022% Change Nov 2023% Change Dec 2023Dec 2023 vs. Nov 2023Dec 2023 vs. Dec 2022
All items (CPI Headline)100.00107.2112.7112.70.05.1

(Additional tables available in the complete release)

Contributions to Inflation Rate

Contributions to the Annual Percentage Change in the CPI Headline

GroupContribution (% Point)Nov 2023Dec 2023
Food and non-alcoholic beverages1.61.5
Housing and utilities1.31.3
Miscellaneous goods and services0.80.7

Contributions to the Monthly Percentage Change in the CPI Headline

GroupContribution (% Point)Nov 2023Dec 2023
Food and non-alcoholic beverages0.20.0
Housing and utilities0.00.1
All items-0.10.0

Update of the CPI Basket and Weights

Stats SA announced an upcoming update to the CPI basket of goods and services, scheduled for the January 2025 release. This update will primarily be based on the results of the income and expenditure survey conducted in November 2023.


The annual consumer price inflation for December 2023 reflects a stable economic environment with a slight dip from the previous month. While certain sectors, such as food and housing, contributed to the inflation rate, the overall annual average for 2023 showed a decrease from the previous year. Stats SA’s commitment to updating the CPI basket and weights aligns with the agency’s dedication to providing accurate and reflective economic indicators.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: Twitter: @NtsoaneLethabo