Annual consumer price inflation fell to its lowest reading since September 2004, dragged lower mainly by falling fuel prices. The Consumer Price Index (CPI), which measures the prices of a range of consumer goods and services, increased by 2,1% in May 2020 compared with May 2019. The reading for September 2004, 15 years and eight months ago, was 1,3%.

The monthly change in the CPI (from April 2020 to May 2020) was -0,6%.

Fuel a major drag on CPI

The most significant price move in May was the fall in fuel prices. The fuel index slumped by 12,2% from April. The transport category – which includes fuel, running costs, vehicle purchases and public transport – was the only contributor to the -0,6% monthly change in the CPI.

The fuel index is 25,9% lower than it was in May 2019. As a motorist, you are paying less for petrol than you did a year ago. The price of inland 95-octane petrol, for example, was R12,22 per litre in May 2020. In May 2019, the price was R16,67.¹

Meat and dairy prices are up, but beverages are cheaper

Food and non-alcoholic beverages prices edged up by a monthly average of 0,3% in May, for the third consecutive month. Annual inflation for this category was 4,4%, identical to April’s reading.

Meat prices climbed by 5,5% over the past 12 months, but registered a 0,1% fall between April and May. Stewing beef prices are 2,1% lower than they were in April.

Prices of dairy products climbed by 3,7% from April and by 7,1% from May 2019. The oils and fats index rose by 2,3% from April, recording an annual rise of 8,3%. Margarine prices saw a monthly increase of 3,6%. Peanut butter was 5,8% more expensive in May compared with April, recording an annual rise of 16,3%.

Decreases were seen across most non-alcoholic beverage products with an overall month-on-month price drop of 2,4%. Prices for hot beverages, such as tea and coffee, fell by 1,9% between April and May, with instant coffee prices in particular declining by 4,2%. Cold beverage prices fell by 2,7% over the same period.

For more information, download the latest Consumer Price Index (CPI) release here.

¹ Department of Energy, Comparing prices for petrol, diesel and illuminating paraffin (IP) (click here).

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