Inflation represents the combined impact of price changes across various goods and services, weighted by their importance in household spending. Examining relative price changes and inflation by component provides meaningful insights into South Africa’s inflation patterns and the factors driving these fluctuations over time. Food and beverages and Housing and Utilities are the CPI divisions that have high weighs in the index and have experienced average inflation well above the 4.5% target. The volatility in the food category reflects the influence of global food prices, domestic weather conditions and the exchange rate, while the high average rate in housing reflects high administered price increases in electricity and water tariffs.
Compiled by Lisa Martin
