South Africa inflation ticks higher as education and housing costs rise
South Africa’s inflation rate edged slightly higher in March but remains relatively subdued overall. Annual consumer inflation rose to 3.1 % up from 3.0% in February, according to Statistics South Africa.
On a monthly basis, prices increased by 0.6%. The main drivers behind the rise were housing and utilities along with food, and financial services.
Six of the thirteen major spending categories recorded increases including transport, education, and restaurants. Education continues to stand out.
Tuition fees climbed by 5.4% this year with private education seeing the sharpest rise at 7.5%. In contrast, transport costs remain in negative territory, down 1.6% compared to a year ago, although the pace of decline is slowing.
Officials note the data was collected before April’s fuel price increases meaning upward pressure could build in the coming months. Food inflation eased slightly to 3.6%.
Several categories including fruits, vegetables, cereals, and dairy actually recorded deflation. Dairy prices, in particular, have now fallen for ten consecutive months.
Overall, goods inflation continues to slow, while services inflation is picking up.
