Inflation Eases, But the Grocery Bill Tells a Different Story
Loading player...
GUEST: Johann Els – Old Mutual Group Chief Economist.
South Africa’s inflation story is showing signs of relief but it’s not all good news for households. Headline consumer inflation slowed to 3.5% in November, its lowest reading in months, helped by falling fuel prices and a sharp drop in used vehicle inflation. Transport inflation cooled significantly, with used cars now cheaper than a year ago and fuel prices down month-on-month, easing pressure on commuting and mobility costs. With CPI dipping by 0.1% in November, questions are mounting about what this means for interest rates, borrowing costs and the broader economic outlook as the year draws to a close.
South Africa’s inflation story is showing signs of relief but it’s not all good news for households. Headline consumer inflation slowed to 3.5% in November, its lowest reading in months, helped by falling fuel prices and a sharp drop in used vehicle inflation. Transport inflation cooled significantly, with used cars now cheaper than a year ago and fuel prices down month-on-month, easing pressure on commuting and mobility costs. With CPI dipping by 0.1% in November, questions are mounting about what this means for interest rates, borrowing costs and the broader economic outlook as the year draws to a close.
