Lower fuel prices help consumer inflation to lowest in two years despite electricity costs

Annual consumer inflation was at 4.7% in July from 5.4% in June, the lowest reading since July 2021 when the rate was 4.6%, Stats SA said on Wednesday.

Previously a major upward driver of inflation, the transport category helped pull down overall inflation in July.

Fuel prices were largely to blame. In July 2021 the price of inland 95-octane petrol was R17.39 per litre, increasing sharply to a record high of R26.74 per litre in July 2022. Fuel prices then began to ease. Inland 95-octane petrol receded to R22.46 per litre in July 2023. For a vehicle with a 50l fuel capacity, this translates to a saving of R214.

Bread, cereals and meat inflation also eased.

Resisting the downward trend were dairy, beverages, sugar, sweets and desserts on top of the recent increases for ratepayers.

Cheese prices in particular are rising sharply, with large annual increases recorded for cheese spread (up 19.5%), cheddar cheese (up 19%) and Gouda cheese (up 16.6%). White sugar is on average 20.8% and brown sugar 22.8% more expensive than a year ago.

On average, households are paying 14.5% more for electricity. Water tariffs increased by 9.6% and property rates by 2.9%.

TimesLIVE