Highest inflation in almost five years

Highest inflation in almost five years

Inflation hits 6,6% in May 2014, the highest rate in almost five years
(6,8% in July 2009). The monthly increase is a modest 0,2%. The big
jump in the annual rate is mainly as a result of a drop of 0,3% in the
index in May 2013. This drop was mainly a result of a 73c/l drop in the
petrol price and only modest changes in other groups in that month.

Strong increases continue to be observed in food (excl. non-alcoholic
beverages), which has an annual increase of 9,1%. This is the highest
annual rate since February 2012. Most types of meat continue to
experience inflationary pressures with the group showing an annual
increase of 8,2%. The bread and cereals group has an annual rate of
10,1%, similar to the 10,2% recorded last month. Tea (ceylon) prices
increased by 1,1% from April 2014, leading to an annual increase of
8,5%.

Providing some relief to consumer was the 3,6% drop in the price of
cooking oil from last month. The average price of a two litre bottle of
sunflower oil dropped from R36,04 in April to R35,04 in May.

The price of spirits increased by 1,5% from May 2014, pushing the
annual rate to 8%. Spirits were subject to a 12% increase in excise
taxes in April, and this increase may still be distilling its way to
consumers.

Full report here:
http://beta2.statssa.gov.za/publications/P0141/P0141May2014.pdf