Inflation in South Africa falls to four-year low

By Mark Ogagan

Inflation in South Africa fell to its lowest level in four years in October, official data showed on Wednesday.

“Annual consumer price inflation was 2.8 percent in October 2024… the lowest since June 2020 (during the COVID-19 pandemic) when the rate was 2.2 percent,” Statistics South Africa (Stats SA) said in a statement.

The consumer price index (CPI) increased by 2,8% in the 12 months to October 2024. This represents a sharp decline from 3,8% recorded in September. October’s print is the lowest since June 2020 (during the COVID-19 pandemic) when the rate was 2,2%.

The South African Reserve Bank (SARB) is scheduled to meet on Thursday, 21 November and could well cut interest rates based on this latest news.

October inflation declined from 3.8 percent in the previous month, primarily because of falling fuel prices according to the national statistics agency.

“Petrol and diesel prices declined by 5.3 percent between September and October,” said Stats SA.

It said annual inflation for food and non-alcoholic beverages fell from an average of 4.5 to 4.7 percent over a period of six months to 3.6 percent in October.

“This is the lowest rate since November 2019,” it added.

Africa’s largest and most industrialised economy is battling multiple fronts.

Last week, Stats SA said the unemployment rate had decreased for the first time this year though it remained high at 32.1 percent.

The country has among the highest levels of inequality in the world and poverty affects more than 60 percent of the population.