Consumer inflation slowed for a third consecutive month, cooling to 4,4% in August from 4,6% in July. This is the lowest inflation print since April 2021 when the rate was also 4,4%. Lower annual rates were recorded for several product groups, most notably transport, housing, and restaurants & hotels. In contrast, inflation for food & non-alcoholic beverages (NAB) and alcoholic beverages & tobacco edged higher in August.

Transport inflation loses steam

All transport-related products recorded softer annual rates in August. Fuel prices continued to trend downward, declining for a third consecutive month. The fuel index dipped by 0,5% month-on-month, slowing the annual rate to 1,8%. Motorists using inland 95-octane petrol paid 15c less per litre in August (R23,11) compared with July (R23,26).¹

Diesel followed a similar trend, with motorists enjoying a fourth consecutive cut. The average price for a litre of diesel was R23,23 in August compared with R23,35 the month before.²

Transport’s influence on overall inflation has waned since mid-2022, when it was the biggest factor behind the rise in the cost of living. It accounted for 44% of overall inflation in July that year. Fast forward to August 2024, transport accounted for 9%, placing it behind other major contributors such as housing & utilities and food & NAB. In August, housing & utilities accounted for a quarter of the total inflation rate.

Food inflation edges higher

After an 8-month downtrend, annual food & NAB inflation picked up in August, rising to 4,7% from 4,5% in July. Most product groups registered higher annual rates, including bread & cereals; meat; fish; milk, eggs & cheese; oils & fats and vegetables. Lower rates were recorded for fruit; sugar, sweets & desserts; and both hot and cold beverages.

Annual bread & cereals inflation quickened for a third successive month. Products with the largest annual price increases include rice (up 17,3%), pizza and pies (up 10,9%) and hot breakfast cereals (up 7,9%). The monthly rise in bread & cereals was 0,4%, with notable increases recorded for grain-based products such as bread flour (up 2,1%), brown bread (up 1,3%) and white bread (up 1,2%).

While the meat index increased on an annual basis, prices dipped by 0,4% between July and August. Several chicken and beef products were cheaper in the month, with notable decreases recorded for fresh whole chicken (down 2,2%), sausage (down 1,7%), chicken giblets (down 1,3%) and beef mince (down 1,3%). On the other hand, bacon, beef extract, corned beef, fresh chicken portions, ham and biltong were more expensive.

Hot beverage inflation continues to burn. Despite the annual print slipping from 17,6% in July to 17,5% in August, it remains the group with the highest rate among all food & NAB categories. Instant coffee inflation hit a 19-month high at 22,3%. The average price for 250 grams of instant coffee was R67,37 in August 2024, up from R52,71 in August 2023.

The graphs below show food and beverage products that recorded the most significant annual and monthly price increases in August.

Other notable price changes

Following the consumer price index (CPI) results in July,³ Stats SA completed its survey of municipal service charges in August. Electricity tariffs increased by a monthly 0,1%, taking the annual rate to 11,5%.

For more information, download the August 2024 CPI statistical release and associated Excel files with indices and average prices here. The archive is available here.

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

² Stats SA, CPI_Average Prices_All urban(202408) Excel file.

³ Read more on the latest municipal tariffs here.

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