A member of the Save Act, an informal savings club known as stokvels, counts bank notes before making her contribution during one of their gatherings in Vanderbilpark, in the south of Johannesburg, South Africa, September 11, 2021.Consumer Price Inflation decreased to 5.7% in January from 5.9% in DecemberMotorists and businesses breathed a little easier in January as fuel prices dropped by 2.8% from the record highs in December 2021.
Core inflation, which excludes food and non-alcoholic beverages, as well as fuel and energy prices from the CPI, came out at a subdued 3.5% , reflecting the impact of higher commodity prices. “The upside risk to the food inflation is due to weather conditions globally and generally and still elevated global food prices which will kind of offset the optimistic crop outlook domestically. And then on the transport of fuel side, although we do have oil prices focused to fall throughout the year we have seen that it has persisted at higher levels for much longer due to supply constraints, so the trajectory will depend much on developments on the supply side,” says Reddy.
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