Inflation has been slowing down in South Africa for the past year. In May, the increase in consumer prices was 6.3% year-on-year, compared to 6.8% in April, according to data published by the South African statistics agency Stats SA.
This is the lowest rate since April 2022, when it was 5.9%. The increase in food prices also slowed down, from 9% in April to 8% in May.
Gouda cheese, food supplements and instant noodles recorded significant price increases between April and May 2023, as per Stats SA. On the other hand, rusks (4.5%), condensed milk (4.7%) and chicken (4.9%) showed the lowest increases over the monthly period.
Meanwhile, over the year from May 2022 to May 2023, it was onions (58.9%) and carrots (33.5%) that have risen up the most whereas powdered milk for children (22.5%), rusks and cauliflower (22.6%) represent the least change. The inflation rate for services remained unchanged at 4.7%.
"This slowdown in the annual increase in the consumer price index reduces the pressure exerted on the Central Bank to continue raising its key interest rate," summarizes Ecofin Agency, an information agency specializing in public management and the African economy.