On Now
Weekdays 06:00 - 09:00
The Good Morning Breakfast Shandor and Margaret
NEXT: 09:00 - 12:00 Mid-Morning Magic with Yolanda
Listen Live Streams

National

Consumer price inflation drops slightly

───   ANDRE GROBLER 16:50 Wed, 15 Feb 2017

Consumer price inflation drops slightly | News Article
Gallo Images

Johannesburg - Consumer price inflation dropped slightly to 6.6 percent in January 2017, which is 0.2 percent lower than December 2016's 6.8 percent.


FNB economist, Mamelo Matikinca, says the 6.6 percent was in line with market expectations. She says food inflation is still the main driver behind inflation. 

Matikinca says consumers will also remember that they paid slightly more for petrol at the gas station for the 50 cent rise in petrol prices during January 2017, which also contributed significantly to headline inflation during the past month. 

Matikinca says looking forward, the path of inflation deceleration is not going to be as quick as expected. The reason for this remains elevated food prices.  

She says although the country had signs of good rains in the later part of 2016 and this year, which should benefit grains, meat prices remain elevated. 

Matikinca says meat is a large component of food inflation.  

Andre Grobler/OFM News

@ 2024 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.