South African consumer inflation price remained at 3.2% in February, the same as January, according to figures released by Statistics South Africa.
The flat rate is a seesawing economic performance despite stresses in broad categories such as food, utilities, and health care. “Inflation moderated for several products categories headed by personal care, health services, and transport,” Stats SA Director of CPI Operations Lekau Ranoto said, some relief from universal ills.
The top year-on-year inflation contribution came from the housing and utilities basket at 4.4%, while food and beverages accelerated to 2.8% from 2.3% in January.
Maize meal, found in every household, was 17 months high in inflation as inflation for hot drinks accelerated to 14.6% year-on-year, thanks to upstream forces from agriculture and manufacturing.
This steady inflation rate has uncertain implications for South African markets. Stabilization is accompanied with some degree of economic certainty, especially for consumer-oriented industries, but rising prices of staple food can constrain households.
Medical aid covers premium costs also rose steeply by 10.5% this year and add additional pressure on household budgets.
But lower rates of inflation in transport and personal care industries provide relief and suggest potential areas of economic resilience.
The economic actors will be watching these trends keenly since South Africa finds it difficult to balance a fine line between local pressures and international pressures on prices.
The steady inflation rate of 3.2% is a sanity moment that keeps positive momentum ahead if managed well.
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