The Consumer price inflation in South Africa attained a value of 5.83 % in 2023
The indicator recorded a historical change (bps difference) of 251 bps between 2020 to 2023, and is expected to decline by...
GlobalData projects the figure to change by 40 bps between 2024 and 2028, reaching...
Inflation
Inflation is the term used to describe an increase in the price of goods and services within an economy that reduces the purchasing power of the currency. It is calculated as the rate of price change over a specific period. The consumer price index is one of the most used measures for determining inflation in an economy (CPI).
Global Inflation
The average yearly rate of growing rise in national prices across all nations is what is known as global inflation. There are several ways to compute it, including the basic average, weighted average, and median price change. Due to supply chain disruption brought on by the conflict between Russia and Ukraine, the global inflation rate is predicted to increase to 6.5 percent in 2022 from 3.5 percent in the previous year. Between 2021 and 2022, the annual inflation rate increased in most nations, although it increased at some of the greatest rates in Europe, Brazil, Turkey, the United States, and Israel. Nearly half of the Eurozone nations experienced double-digit inflation by June 2022, and the region's average inflation rate hit 8.6 percent, the highest level since the currency union in 1999.
Consumer Price Inflation in South Africa
Between 2018-2021, the consumer price inflation in South Africa was highest in the year 2021, reaching 4.5%, an increase of 0.41% over the previous year 2020. Between 2018 to 2021, South Africa’s consumer Inflation was constant.
Inflation in South Africa in 2020 averaged 3.3%, a sharp drop compared to the previous year due to low consumer demand brought about by poor employment conditions. In May 2021, the inflation rate rose to 5.2% compared to 4.4% in April 2021. The rise in prices was due to the increase in prices of food and beverages and transport.
Factors that Impact Inflation Rate
Some of the major factors affecting consumer prices are government policies, money supply, consumer spending, employment levels, high disposable income, and wage levels. Interest rates can also have a significant impact on spending on consumer goods.
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