South Africa experienced a notable decrease in consumer price inflation in September, reaching its lowest point in three and a half years. This decline was primarily driven by reduced transportation costs, according to data released by Statistics South Africa on Wednesday.
The Consumer Price Index (CPI) saw a year-on-year increase of 3.8 percent in September, down from a 4.4 percent rise in August. Analysts had predicted a more modest decrease to 3.9 percent. This marked the lowest inflation rate since March 2021, when inflation stood at 3.2 percent.
Additionally, the inflation rate remained below the South African Reserve Bank's target midpoint of 4.5 percent, indicating a favorable economic environment. The core inflation rate, which excludes non-alcoholic beverages, fuel, and energy prices, remained stable at 4.1 percent.
Transportation costs fell by 1.1 percent compared to the previous year, primarily due to a significant 9.0 percent drop in fuel prices. Conversely, the annual price increase for food and non-alcoholic beverages continued at a consistent 4.7 percent, while housing and utilities experienced a 4.8 percent rise in costs.
On a month-to-month basis, consumer prices saw a modest increment of 0.1 percent, with core consumer prices rising by 0.3 percent.
