Zuko Komisa
- South Africa’s inflation edged up from 3.3% to 3.4% in September, a modest but meaningful rise driven by specific domestic price pressures.
- The uptick was primarily caused by increases in housing, utilities, and restaurant prices.
- This rise was largely offset by falling global food costs and a stronger rand, keeping overall inflation in check.
South Africa’s headline inflation saw a marginal increase in September, rising to 3.4% from 3.3% in August.
While this uptick is small, it signals a subtle shift in the nation’s economic landscape, which is currently subject to a complex interplay of factors.
According to Momentum Investments Chief Economist Sanisha Packirisamy, the slight rise was primarily fuelled by increases in specific sectors:
- Housing and Utilities: Costs associated with housing and essential services contributed to the upward pressure on the consumer price index (CPI).
- Restaurants: Prices within the restaurant and hospitality sector also saw an uptick
Packirisamy stated that while some domestic price categories are contributing to higher inflation, the influence of global factors and currency strength is acting as a crucial counterweight, keeping the overall CPI rise modest.
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