South Africa’s headline consumer inflation ticked slightly higher in April, rising to 2.8% year-on-year, up from 2.7% in March, according to the latest Consumer Price Index (CPI) data released by Statistics South Africa.
On a monthly basis, inflation grew by 0.3%, reflecting upward pressure from food and beverage prices.
Inflation for food and non-alcoholic beverages (NAB) climbed to 4.0% year-on-year, marking the highest annual rate since September 2024 (4.6%). The category recorded a monthly increase of 1.3%, the steepest rise since October 2023.
The key driver behind this increase was meat, particularly beef products such as stewing beef, mince, and steak. Meat prices surged by 2.3% between March and April, the highest monthly increase since January 2023 (2.5%).
Meat is not only the largest component of the food basket, but also accounts for 5.1% of overall household spending, making it a critical inflationary pressure point for consumers.
The oils and fats category also saw upward movement, rising by 1.4% month-on-month, pushing the annual rate to 4.8%. Year-on-year, cooking oil prices are up 6.1%, while brick margarine is 5.5% more expensive than a year ago.
For coffee lovers, there’s no relief in sight. Annual inflation for hot beverages jumped to 15.2%, close to the high of 15.8% recorded in September 2024. Instant coffee leads this category with a 20.2% year-on-year increase.
Globally, coffee prices have surged, with the World Bank’s index for robusta beans rising by 28.1%, feeding into domestic price pressures.
Alcoholic beverages and tobacco rose by 4.7% annually, up from 4.1% in March. Monthly inflation in this category eased slightly, from 1.6% to 1.3%, likely reflecting the residual effects of excise tax hikes announced earlier in the year.
On a more positive note for consumers, fuel prices continued to decline in April. Prices fell by 3.2% month-on-month, contributing to a 13.4% year-on-year drop.
The inland price for 95-octane petrol dropped to R21.62 per litre, down from R22.34 in March, while diesel prices declined to R21.94, compared to R22.80 in the previous month.
Subdued inflation, still below the SARB’s 3%-6% target band, could strengthen the case for monetary easing in the coming months.
However, rising food and beverage costs, especially for essentials like meat and coffee, are a growing concern for consumers.
This comes amid a backdrop of modest economic recovery, persistent unemployment, and elevated living costs, keeping pressure on household budgets.
Minister of finance, Enoch Godongwana, will on Wednesday, return to Parliament to re-table the 2025 Budget Review.
This decision follows the minister’s recent announcement and subsequent request to the Speaker of the National Assembly to maintain the Value-Added Tax rate at its current level of 15%, reversing the previously proposed 0.5 percentage point increase presented in the 12 March budget.
“The revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act.
“This includes formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the Government of National Unity as well as Cabinet approval before presentation to Parliament,” National Treasury said.
