According to Wednesday’s numbers released by StatsSA, South Africa’s annual inflation rate decreased marginally in January from 7.2 percent to 6.9 percent despite ongoing increases in food costs.
According to a statement by StatsSA, “food and soft drinks, housing and utilities, and transport were at the heart of the 6.9 percent annual inflation rate.”
With an expansion of 5.2 percent between December and January, the prices of vegetables in particular rose significantly. Compared to the last year, the price of bread, cereal, and meat rose by 22.1 percent in January.
7.8 percent was a record high for inflation in the nation in July, driven as it is globally by the conflict in Ukraine. The central bank of South Africa has repeatedly hiked its main policy rate, which is currently at 7.25 percent, in an effort to reverse the trend.
The central bank forecasts that in 2023, inflation would decline to 5.4 percent, and GDP growth will be sluggish, at just 0.3 percent.