'Food and fuel prices driving inflation but we could see petrol drop in 2022'
Annual consumer price rose slightly in September to 5,0%, from 4,9% in August.
Statistics South Africa published its latest Consumer Price Index (CPI) on Wednesday.
CPI inflation continues to be driven by higher food and fuel prices.
Annual consumer price #inflation was 5,0% in September, slightly up from 4,9% in August. The #CPI increased by 0,2% m/m in September 2021.— Stats SA (@StatsSA) October 20, 2021
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Bruce Whitfield interviews Ettienne le Roux, Chief Economist at Rand Merchant Bank (RMB).
Le Roux notes that food is now 7% more expensive than in September last year and petrol costs 20% more.
Price increases seem relentless at the moment; is there any prospect of relief?
We started the year with headline inflation at about 3%. It went up as high as 5.2% in May, now we're at 5%.Ettiene le Roux, Chief Economist - Rand Merchant Bank
It's definitely rising, but I don't think that trajectory will be sustained... We do think that inflation in the second half of next year can actually come down a bit. One important reason for that is because we don't think oil can continue to go up in a straight line.Ettiene le Roux, Chief Economist - Rand Merchant Bank
I think it is just another commodity and at some stage supply will catch up. If that is the case we can actually see petrol prices coming down sharply next year.Ettiene le Roux, Chief Economist - Rand Merchant Bank
He says the good news is that there are still few, if any signs of spillover effects.
Excluding food, fuel, and electricity, CPI inflation came to just 3.2% year-on-year - a rate almost no different than six months ago.Ettiene le Roux, Chief Economist - Rand Merchant Bank
Listen to le Roux's analysis and predictions on The Money Show:
This article first appeared on CapeTalk : 'Food and fuel prices driving inflation but we could see petrol drop in 2022'
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