SA's Annual Inflation for 2024 Drops to 4.4%, Down from 6% in 2023

According to Stats SA's Chief Director, Patrick Kelly, the average inflation rate for 2024 stood at 4.4%, a notable drop from 6% in 2023.

Statistics South Africa (Stats SA) has reported a slight increase in the Consumer Price Index (CPI) for December 2024, with inflation rising to 3% compared to 2.9% in November. This marks the end of the year with inflation showing a mild uptick.

According to Stats SA's Chief Director, Patrick Kelly, the average inflation rate for 2024 stood at 4.4%, a notable drop from 6% in 2023. The data highlights how inflationary pressures have moderated, particularly in comparison to the previous year.

Food and Beverage Inflation Trends

The inflation rate for food and non-alcoholic beverages saw a slight increase, rising to 2.5% in December from 2.3% in November. Bread and cereal products remained stable with an annual price increase of 3.7%. However, between November and December, several food items saw price declines, including brown bread (-0.6%), macaroni (-0.7%), instant noodles (-2.2%), and cake flour (-1.1%).

The meat category also showed a decrease in inflation, with a 0.4% drop in prices over the year, marking the lowest annual rate since May 2019. Products such as sausages, pork, and whole chicken experienced notable declines, but beef extract, bacon, and ham saw increases, with prices rising 5.1%, 4.8%, and 4.2%, respectively.

Hot Beverages and Rental Costs

Hot beverages continued to see high inflation, with a 13.5% increase in December, slightly up from November's 13.1%. Instant coffee was notably more expensive, with an annual increase of 16.1% by December 2024.

In the housing category, actual rental inflation softened to 2.8% in the fourth quarter of 2024, down from 3.3% in the third quarter. Similarly, owners’ equivalent rent inflation decreased to 2.4%, contributing to a reduction in the overall housing and utilities inflation rate to 4.4%, from 4.7% in the previous quarter.

Vehicle and Fuel Price Trends

Vehicle inflation experienced a steep decline during 2024, dropping from 7.2% in January to negative growth in December. Used vehicles saw a 0.6% decrease in their average price year-over-year.

Fuel prices increased by 1.1% between November and December but were still 10.2% lower than in December 2023.

Restaurants, Hotels, and Other Services

Inflation in the restaurants and hotels sector fell to 4.2% in December, down from 5.9% in November, driven by a drop in hotel room rates, which declined by 4.2% month-on-month. The annual change for hotels dropped to 1.9% in December, compared to 7.6% in November.

Purpose of the CPI Survey

The CPI results are part of Stats SA's monthly Survey of Consumer (Retail) Prices, which tracks the price changes of goods and services purchased by the average South African household. These data are essential in understanding the economic landscape, guiding policymakers, businesses, and consumers in making informed decisions.

As inflation continues to evolve, the South African economy will closely monitor trends in key categories such as food, housing, and fuel, with the potential for further adjustments in the year ahead.