According to the nation’s statistics agency, StatsSA, South Africa’s annual inflation rate decreased marginally in January from 7.2% to 6.9%, although food prices continued to grow.
Food and non-alcoholic drinks, housing and utilities, and transportation were the biggest contributors to the annual inflation rate of 6.9%, according to a statement from StatsSA.
Vegetable costs in particular increased significantly, by 5.2% between December and January. In January, the cost of beef increased by 11.2% while the cost of bread and cereal increased by 22.1%.
In July, the country’s inflation rate reached an all-time high of 7.8%, driven as it was globally by the conflict in Ukraine. The South African central bank has regularly increased its main policy rate, which is now at 7.25%, in an effort to reverse the trend.
Meanwhile, the central bank anticipates poor GDP growth of just 0.3% in 2023 and a slowdown in inflation to 5.4%.