SA consumer inflation drops to nine-year low

Annual inflation eased for a third consecutive month in November, falling to 3.6% from October’s 3.7%.

November’s reading is the lowest since December 2010 when the rate was 3.5%, Statistics SA said in a statement posted on its website. The highest rate recorded since December 2010 was 7.0% in February 2016.

Since the end of 2016, inflation has been on a downward trend, and has remained firmly within the South African Reserve Bank’s 3%–6% monetary policy range since April 2017, Stats SA said.

Key findings

Annual consumer price inflation was 3.6% in November 2019, down from 3.7% in October 2019. The consumer price index increased by 0.1% month-on-month in November 2019.

The main contributors to the 3.6% annual inflation rate were food and non-alcoholic beverages; housing and utilities; and miscellaneous goods and services.

Food and non-alcoholic beverages increased by 3.5% year-on-year, and contributed 0.6 of a percentage point to the total CPI annual rate of 3.6%.

Housing and utilities increased by 4.8% year-on-year, and contributed 1.2 percentage points.

Miscellaneous goods and services increased by 5.7% year-on-year, and contributed 0.9 of a percentage point.

The annual inflation rates for goods and for services were 2.8% and 4.2% respectively. Provincial annual inflation rates ranged from 3.2% in Eastern Cape to 4.1% in Western Cape and Limpopo.

  • Stats SA media release