Consumer Price Inflation Drops to 5.3% From 5.6%, South Africans Are Not Comforted

Consumer Price Inflation Drops to 5.3% From 5.6%, South Africans Are Not Comforted

  • Consumers can breathe a sigh of relief after consumer price inflation decreased 0.3% points from the previous months
  • It was 5.6% in February, and it dropped to 5.3% in March; food inflation also decreased by 1.2% from 6% to 4.9%, meaning food is cheaper than in previous months
  • South Africans, though, were frustrated that this was not enough as fuel prices recently increased

Tebogo Mokwena, a Briefly News journalist with nine years of experience, offered valuable insights into South Africa's business environment during his three years at Vutivi Business News.

Consumer price inflation and food price inflation went down in March
Consumer price inflation dropped to 5.3% from 5.6%, but netizens are wary. Images: Photo by Luca Sola/ AFP via Getty Images and Daniel de la Hoz. Images are used for illustrative purposes only.
Source: Getty Images

JOHANNESBURG – Inflation dropped in the third month of the year, decreasing by 0.3%. Food inflation also took a slight knock, but netizens were unconvinced.

Inflation decreased in March

According to eNCA, food inflation decreased from 6% in February to 4.9% in March. Inflation declined to 5.3% from 5.6%. The contributors to the decrease include food and non-alcoholic beverages and transport, housing and utilities and goods and services.

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Economist Annabel Bishop said poor weather conditions put upward pressure on the food price. She also said not much can be done about the international commodity price fluctuations regarding the fuel prices. She is also expecting higher food price inflation later this year.

South Africans not convinced

Netizens on Facebook believed the inflation decrease was a drop in the ocean.

Itumeleng Dikgetsi said:

"An increase in petrol and electricity tariffs, coupled with some taxes. I think this would be short-lived, or it could mean people are simply cash strapped and aren't spending much."

Victor Mudau said:

"It drops, but petrol is increasing."

Emmanuel Makumbane asked:

"So, is the Reserve Bank going to cut their repo rate? Cos it looks like they only wait for bad news and immediately increase the rate."

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Jack Prentice said:

"Just in time to absorb the massive increase in municipality service charges and rates effective on 1 June, which are well above this fictitious consumer price inflation figure."

Ian Lawrie said:

"I don't believe a word of it. Our lived, daily lives tell a different story."

Pick n Pay food prices stun KwaZulu-Natal

Similarly, Briefly News reported that Pick n Pay's food prices stunned a man from KwaZulu-Natal.

The gent walked through the store and complained that food had become expensive. Many in the country resonated with the video.

Source: Briefly News

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