Financial News: South Africa Inflation Climbs For Second Month, Retail

South Africa Inflation Climbs For Second Month, Retail Sales Growth Improves

01/22/2025 - 07:28:00 (RTTNews)

(RTTNews) - South Africa's consumer price inflation accelerated for a second straight month in December and retail sales growth improved again in November, separate data from the statistical office showed on Wednesday.

The consumer price index rose 3.0 percent year-on-year following a 2.9 percent rise in November, Statistics South Africa said. Economists were looking for a 3.2 percent increase.

The main contributors to the annual inflation rate were housing and utilities, miscellaneous goods and services, food and non-alcoholic beverages and alcoholic beverages and tobacco, the agency said.

Services inflation slowed to 4.2 percent from 4.3 percent in November. Inflation for food & non-alcoholic beverages group climbed to 2.5 percent from 2.3 percent.

The monthly inflation rate in December was 0.1 percent. The annual average inflation slowed to 4.4 percent in 2024 from 6.0 percent in 2023.

The 2024 inflation rate was the lowest in four years since the pandemic in 2020, when the average rate was 3.3 percent.

The <a href=https://www.rttnews.com/3492257/south-african-reserve-bank-cuts-policy-rate-to-7-75.aspx target=_blank >South African Reserve Bank</a> expects temporary supply shocks to keep inflation below 4 percent until mid-2025 and thereafter inflation is forecast to climb to 4.6 percent from late 2025.

A separate report from Statistics South Africa, released later on Wednesday, showed that retail sales growth improved for a second month in a row in November.

Retail sales grew 7.7 percent year-on-year following a 6.2 percent increase in October. Economists had forecast a 5.5 percent gain.

Biggest contributions came from general dealers, retailers in textiles, clothing, footwear and leather goods and retailers in household furniture, appliances and equipment.

Retailers in hardware, paint and glass were the only group with a negative contribution.

Sales rose for a second straight month also on a monthly comparison. Retail sales rose 0.8 percent month-on-month in November after a 1.6 percent increase in October and a 0.4 percent fall in September.

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