12: 04 11/12/2019
Rates of food and other fundamentals increased at a slower pace in November, giving cash-strapped South African customers a welcome reprieve ahead of the Christmas holidays.
Figures launched by Stats SA on Wednesday revealed that the nation’s yearly consumer cost inflation reduced to 3.6%in November from 3.7%in October.
The last time the yearly CPI was lower than this was in December 2010 when it stood a 3.5%. It was likewise the 3rd month in a row that the CPI fell. It reduced from 4.3%in August to 4.1%in September and then 3.7%in October.
Stats SA stated costs of food and non-alcoholic drinks increased at an even slower rate, contributing just 60 basis indicate the overall CPI of 3.6%.
The products that pushed up the expense of living the most were various products and services, whose rates increased by 5.7%year-on-year followed by real estate and utilities, which increased by 4.8%year-on-year. The rise in housing and utilities contributed the most to the CPI boost at 1.2 percentage points.
Economic expert Mike Schussler said if it wasn’t for boosts in healthcare-related costs and things like water and electrical power, the general inflation would have been even lower than the reported 3.6%.
While that benefits consumers, Schussler said low inflation is starting to impact the economy because organisations like sellers can’t pay for to increase costs even if their inputs go up. Having a hard time customers aren’t purchasing enough as it is. If retailers trek their prices, they will offer even lower amounts.
” If you look at retail inflation for instance, it’s been under 3%for 3 years now. Companies understand customers are under pressure. They are trying their best to keep costs low. We are literally in alarming straits. Customers’ pockets can’t stretch anymore. They invest on things that they have no choice on. These are aspects that are really driving inflation,” stated Schussler.