By Nomfanelo Maziya | 2024-10-16

The country’s inflation rate has continued its downward trajectory in September 2024 easing to 3.6 per cent for goods and 3.7 per cent for services, offering some relief to consumers and businesses alike.

This is according to the Central Statistics Office (CSO) CPI report for September. The headline inflation rate, which measures the annual percentage change in the Consumer Price Index (CPI), is 0.5 percentage points lower than the 4.1 per cent observed in August 2024. When compared to the same period last year, the 3.6 per cent observed in September 2024 is 0.16 percentage points higher than the inflation rate of 3.5 per cent observed in September 2023. While still above the central bank's target range, the moderation in inflation is a positive sign for the economy.

This decline was primarily driven by slower price increases in food and non-alcoholic beverages, as well as a decrease in the cost of transportation. Year-on-year, restaurants and hotels increased by a significant of 25.5 per cent was due to higher accommodation costs. Food and Non-Alcoholic Beverages inflation slowed to 3.2 per cent from 9.9 per cent, primarily due to slower price increases in sugar, jams and bread. Health inflation rate rose to 6.7 per cent from 0.4 per cent, driven by higher costs of medical services and pharmaceuticals. The Month-on-Month inflation rate is -0.1 per cent.

“This inflation rate is 0.2 percentage points lower than the 0.1 per cent observed in August 2024,’ said CSO. Month-on-Month, recreation and culture prices increased slightly, with growth in pets and related products.

Transport observed a decline of 0.6 per cent due to lower fuel prices. Clothing and footwear inflation slowed to 0.8 per cent from 1.1 per cent. Reporting on group contributions to the headline inflation rate CSO noted that for September, the housing and utilities contributed a marginal 1.8 per cent while food and non-alcoholic beverages contributed a modest 0.7 per cent. The transport category contributed a slow 0.2 per cent to the headline inflation rate of 3.6 per cent.

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The country’s inflation rate has continued its downward trajectory in September 202...

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