Inflation edges up to 3.4% in September as meat prices surge on Foot and Mouth Disease

SOUTH Africa's annual consumer inflation ticked up slightly to 3.4% in September from 3.3% in August, according to Statistics South Africa on Wednesday.

- SIPHELELE DLUDLA

The monthly change in the Consumer Price Index (CPI) was 0.2%, with increases largely driven by higher prices in transport and restaurants and accommodation.

While several categories saw faster price growth, inflation eased in food and nonalcoholic beverages (NAB), alcoholic beverages and tobacco, and household furnishings and maintenance.

Stats SA chief director of price statistics, Patrick Kelly, said meat inflation surged to 11.7%, the highest annual rate since January 2018, when it reached 13.4%.

“While month-on-month increases for beef products have slowed, prices do remain high. Stewing beef, for example, rose 32.2% year-on-year, but showed no change month-on-month," Kelly said.

"Other meat categories are also feeling the heat. The annual rates for pork and lamb accelerated notably in September. Chicken inflation is also rising, albeit more gradually. IQF chicken portions climbed to 5% from 4.4% in August, boosted by a 1.1% monthly increase."

Nedbank economist Busisiwe Nkonki forecast inflation to trend gradually higher around 4% by the end of the year, because of base effects and elevated meat prices.