The much lower inflation rate should make it easier for the South African Reserve Bank to decrease the repo rate again on Thursday.
Inflation declined sharply in October to 2.8% from 3.8% in September to reach the lowest point since June 2020 during the Covid-19 pandemic when the inflation rate was 2.2%.
According to Statistics SA, that announced the inflation rate for October this morning, falling fuel prices remain the primary factor behind the slowdown. Petrol and diesel prices decreased by 5.3% between September and October, taking the annual rate for fuel to -19.1%.
The price for inland 95-octane petrol in October was R21.05, the cheapest since February 2022 when the price was R20.14.
The aggregate transport index decreased by an annual 5.3%, pulling overall inflation down by 0.8 of a percentage point.
Food inflation also decreased after remaining steady for six months in the 4.5–4.7% range, with annual inflation for food and non-alcoholic beverages decreasing to 3.6% in October. This is the lowest rate since November 2019, when it was 3.5%).
Statistics SA says inflation cooled for most food and non-alcoholic beverages subcategories in October, except for sugar, sweets and desserts and cold beverages.
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