(3 minutes read)
South Africa’s annual inflation rate marginally fell in January to 6.9% from 7.2% the previous month amidst a continued rise in prices, according to StatsSA, riding on the back of a rise in prices of food and non-alcoholic beverages, housing and utilities, and transport
South Africa’s annual inflation rate marginally fell in January to 6.9% from 7.2% the previous month amidst a continued rise in prices, according to StatsSA, riding on the back of a rise in prices of food and non-alcoholic beverages, housing and utilities, and transport. A deceleration in the rate of increase of prices, analysts say, is a good augury. But they are sceptic whether it could be sustainable against the backdrop of heavy power shortage, which eludes a speedy solution
Vegetable prices rose sharply, at 5.2% between December and January, while bread and cereal prices rose by 22.1% in January on a year-on-year basis. The price of meat, another essential item, has grown by 11.2%.
Read Also:
https://trendsnafrica.com/national-disaster-in-south-africa/
https://trendsnafrica.com/janet-yellen-visits-south-africas-ford-factory/
Inflation had reached an all-time high in the country at 7.8% in July, due to external factors like the war in Ukraine. To reverse the trend, the South African central bank has repeatedly raised its main headline interest rate, which is now at 7.25%. The central bank expects inflation to slow to 5.4% in 2023. The GDP growth in 2023 is expected to be weak at just 0.3%., mainly due to widespread power shortage in the country.
