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Statistics South Africa has released its most recent consumer price index (CPI), which shows that annual headline inflation rose to 5.9% in December 2021, up from 5.5% in November 2021.
Consumer inflation in 2021, according to Stats SA, was 4,5%, higher than the averages for 2020 (3,3%) and 2019. (4,1%).
So how will December’s inflation affect our wallets in 2022?
- Fuel prices jumped by 40,5%, with the cost of inland 95-octane petrol rising to R20,29 per litre. This is the first time that the price has broken through the R20 per litre mark. The record rise in fuel prices is the main factor behind the 16,8% annual rise in the transport index, up from 15,0% in November.
- Motor vehicle insurance (in the miscellaneous category) increased by 2,6% from November to December, taking the annual rate to 1,7%.
- The food and non-alcoholic beverages index recorded an annual rise of 5,5% in December.
- The annual rate recorded for meat in December (8,6%) was slightly up from November’s reading (8,5%).
- Beef products recorded large price increases between November and December, with prices for steak rising by 2,8%, stewing beef by 2,4% and mince by 1,3%.
- Oils and fats continue to record relatively high inflation rates, registering an annual increase of 20,8% in December, slightly lower than November’s 21,0%.
- The average price for a bottle of cooking oil (750 ml) increased by 19c to R30,22 in December. A jar of peanut butter (400 grams) increased by 60c to R34,52.
- Bread and cereal inflation slowed during 2021, with the annual rate softening to 1,8% in December from the year’s high of 4,9% in May.
- The December consumer price index (CPI) release incorporates the most recent results of the quarterly rental survey. Annual inflation for imputed rents (1,9%) and actual rentals (1,1%) remains relatively low.
For more information, download the December 2021 CPI release, click here.
What are your thoughts on the inflation increase? Share your views in the comment section below.
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