SA’s Annual Consumer Inflation Accelerates to 4.5 Percent in April

Updated on 23 May 2018

Subscription Form (#66)
Reading Time: < 1 minute

South Africa’s consumer price inflation bounced up 4.5 percent year-on-year in April from a multi-year low of 3.8 percent in March, the statistics agency said on Wednesday.

The consumer price index increased by 0.8 percent on a month-on-month basis in April, Statistics South Africa said.

“The big story this month is about tax increases,” said Patrick Kelly, the chief director for price statistics at Stats SA.

“Much of the increase we found this month was in product groups which attract excise taxes such as alcohol , tobacco and fuel.”

A one percentage point increase in value added tax also came into effect in April, Kelly noted.

“We’re not entirely sure what the precise impact of this is on this month’s increase but it would certainly have contributed to the upward movement,” he said, adding that a new health promotion levy in the form of a sugar tax also had an impact.

Stats SA said the contribution of food and non-alcoholic beverages to headline annual consumer price inflation increased from 0.6 percentage points in March to 0.7 percentage point in April, while alcoholic beverages and tobacco increased from 0.3 to 0.4 percentage points.

Transport’s contribution rose from 0.4 percentage points in March to 0.7 percentage points in April, and recreation and culture increased from zero in March to 0.1 percentage points the following month. (via African News Agency)

Get Weekly 5-Minutes Business Advice

Subscribe to receive actionable business tips and resources.

Subscription Form (#66)

Feeling Stuck?