Official data released on Wednesday revealed that South Africa’s monthly inflation rate continued its downward trend in December, decreasing by 0.4 percentage points to 5.1 percent, primarily due to a slowdown in food price increases.
The annual average inflation rate for 2023 stood at 6.0 percent, marking a decrease of 0.9 percentage points from 2022. This figure aligns with the upper limit of the central bank’s targeted range, according to the national statistics agency StatsSA.
StatsSA reported that inflation was notably elevated in the initial five months of 2023 (January–May), consistently surpassing 6.0 percent. However, the subsequent seven months witnessed a moderation in inflation below this threshold.
The highest inflation reading for 2023 occurred in March at 7.1 percent, while the lowest was recorded in July at 4.7 percent.
In December, the inflation rate for food and non-alcoholic beverages decreased to 8.5 percent, down from nine percent in November. Additionally, StatsSA noted a 2.7 percent decline in fuel prices.
Despite these fluctuations, the central bank maintained its main interest rate at 8.25 percent in November, staying within its inflation target range of three to six percent.
