fbpx
13.6 C
Cape Town
Saturday, April 13, 2024

Cost of Living: Consumer price inflation has shot up to 7,8%

Published on

Annual consumer price inflation has shot up to 7,8% in July, up from 7,4% in June.

Statistics South Africa says price increases for products such as bread & cereals, oils & fats, fuel, and electricity made a notable impact on this month’s reading.

The CPI jumped by 1,5% between June 2022 and July 2022 – only the fourth time since 2008 that the monthly increase was 1,5% or higher.

Consumers are feeling the pinch, particularly for non-durable goods – those items bought most frequently, such as food, drink, electricity, fuels, and medicine.

Annual inflation for non-durable goods is in double-digit territory, at 14,4%. This is much higher than the rates recorded for durable goods (4,8%) and services (4,2%).

  • The annual rate for food and non-alcoholic beverages was 9,7% in July, higher than the 8,6% reading in June.
  • Bread & cereals inflation continues to quicken, with the annual rate rising to 13,7% from 11,2% in June; the monthly increase was 2,4% in July, with large monthly price increases recorded for maize meal (4,2%), cake flour (6,3%), macaroni (5,0%) and white bread (2,8%).
  • Rice bucked the trend, with prices decreasing by 3,1%.
  • Oils & fats continue to register the highest annual rate of increase among food products, accelerating to 36,2% in July from 32,5% in June.

The graphic below shows the change in average prices, from July 2021 to July 2022, for a selection of commonly purchased food items:

Municipalities increase service charges in July every year.

Electricity tariffs increased on average by 7,5%, equivalent to the 7,5% benchmark approved by the National Energy Regulator of South Africa (NERSA).

This increase is lower than last year’s rise of 13,8% but higher than the 2020 increase of 6,3%.

Together with the rise in electricity tariffs, consumers also had to deal with further fuel price increases.

Transport costs were up by 4,8% between June and July, with fuel rising by 9,4%.

Fuel is 56,2% more expensive than it was twelve months ago, with the price of a litre of inland 95-octane petrol rising from R17,39 in July 2021 to R26,74 in July 2022.

The average diesel price increased from R16,58 to R26,61 per litre over the same period.

Those relying on public transport didn’t escape the pain. Taxi fares jumped in July too, rising by 9,0% from June and taking the annual rate to 16,4%.

Related: Cost of Living: Tips to stretch your grocery budget

Liesl Smit
Liesl Smit
Liesl is the Smile 90.4FM News Manager. She has been at Smile since 2016, with nearly 20 years experience in the radio industry, including reading news, field reporting and producing. In 2008 she won the Vodacom Journalist of the Year Award, Western Cape region. liesl@smile904.fm

Latest articles

PICS: History made as two Queens dock in Cape Town

  For the very first time, two of Cunard Cruises' Queens, the Queen Mary 2 and the Queen Victoria, are gracing the same African port...

Two Oceans Marathon: Road closures and MyCiTi services impacted

  It's all systems go for the Totalsports Two Oceans Marathon, and the City of Cape Town has geared up its services to provide support...

Health budget cuts: Residents urged to avoid unnecessary hospital visits

  The Western Cape Health Department has urged residents not to visit emergency centres for non-urgent matters, as this may further clog up the system,...