Consumer inflation quickened for the second consecutive month in February, data from Statistics South Africa showed.
The annual rate of consumer inflation jumped to 5.6%, marking a notable increase from 5.3% in January and 5.1% in December.
The median of 17 economists’ estimates in a Bloomberg survey was 5.5%, with the latest numbers likely ensuring that the South African Reserve Bank keeps borrowing costs on hold when it meets next week.
The uptick was primarily fuelled by increases in housing and utilities, miscellaneous goods and services (particularly insurance), as well as food and non-alcoholic beverages (NAB) and transportation.
Notably, health insurance premiums experienced a significant spike, with a month-on-month increase of 10.3%, propelling the annual rate for health insurance to 12.9%.
Over the past year, premiums across all insurance types have risen by 9.5%.
While the overall inflation for food and NAB slowed to 6.1% in February, certain categories within it saw notable increases.
Hot beverages, including instant coffee, black tea, and Rooibos tea, witnessed annual price hikes, driving the segment's inflation rate higher.
Conversely, the oils and fats category remained in negative territory due to a substantial decline in the price of sunflower oil. However, peanut butter prices surged by 14.0% since February 2023.
The impact of rising egg prices continued to ripple through the milk, eggs, and cheese category, with eggs now 30.7% more expensive than a year ago.
Despite a slight decrease from its peak in December 2023, the average price of a tray of six eggs remains higher than in February 2023.
Inflation for rice rose to 25.0% in February, with prices sharply increasing from a year ago.
Similarly, pizza and pies, categorized with rice under bread and cereals, saw significant price hikes, rising by 17.5% over the past 12 months.
However, not all products in the bread and cereals category experienced price hikes. Some items, including bread flour, rusks, ready-mix flour, pasta, and macaroni, were cheaper compared to a year ago.
The transport category also contributed to inflation, with a 5.4% annual increase driven primarily by rising vehicle and fuel prices.
The accompanying graphs illustrate the products with the most significant annual and monthly price increases in February.
It's worth noting that prices for health insurance, as well as for private-sector medical practitioners and hospitals, are surveyed annually in February.
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