Inflation remained unchanged in Feb, despite red-hot maize prices
South Africa’s annual consumer inflation remained steady at 3.2% in February, matching January’s rate and lower than the expected 3.4%. Fuel prices helped keep inflation in check, while food prices rose, driven by a sharp 10.6% hike in maize meal prices. Samp prices also surged 18.7%. Medical scheme premiums increased by 10.5%, reflecting rising healthcare costs.
Annual consumer inflation was 3.2% in February, unchanged from January’s level.
This was cooler than expected, with a median estimate of 15 economists in a Bloomberg survey forecasting a rate of 3.4%.
Fuel prices continue to be cheaper than a year ago, helping to tame inflation.
However, food price hikes increased to the highest level in four months, rising to 2.8% from 2.3% in January – due in large part to a sharp increase in maize prices.
The increase in maize meal prices (+10.6%) was the highest in 17 months. The average price of a 5kg bag of maize meal was R74.91 in February, up from R68.52 a year ago, Statistics SA reported.
Drought in the region hit maize harvests, while also driving increased import demand from neighbours for SA’s maize – fuelling price increases. However, prices have started to fall last month after good rains.
The hike in samp prices (+18.7%) was also at a 19-month high, with the price for samp (1kg) increasing to R22,86 from R19,28 over the same period.
Meat prices are stable – average prices were not only unchanged from January, but also from a year ago. Other products, including vegetables, were cheaper.
But prices of hot beverages continues to push higher. Instant coffee is now 19% more expensive than a year ago, while black tea is 12.4% pricier, Stats SA reported.
Annual changes in medical scheme premiums and health services were also incorporated in February’s inflation data.
Medical scheme premiums increased by 10.5% this year, slightly up from 10.3% in 2024, Stats SA reported. General practitioner’s fees increased by 6.6% and dentist prices were up by 5.2%.
The latest inflation data comes a day ahead of the SA Reserve Bank’s monetary policy committee’s decision on interest rates.
To read more about Maize News continue reading Agriinsite.com
Source : BDnews24.com
