Stats SABusinessLive reports that consumer price inflation accelerated slightly in January, driven by higher food prices and services costs.  

Inflation, as measured by the annual change in the consumer price index, rose to 3.2% in January, from 3.1% in December, Stats SA announced on Wednesday.  Stats SA’s miscellaneous goods and services category, which covers, among other things, insurance, saw a 6.5% rise year on year, contributing one percentage point to the headline figure.  Food and non-alcoholic beverages increased by 5.4% year on year, and contributed 0.9 of a percentage point to the headline figure.  Housing and utilities increased by 2.6% year on year, and contributed 0.6 of a percentage point.  Higher food and international oil prices are expected to put pressure on consumer prices over the short term, but they should remain well below the midpoint of the target range in 2021, NKC African Economics analysts said in a note ahead of the release.


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