Government welcomes softening inflation

Government has welcomed the marginal dip of consumer price inflation from 5.6% in February to 5.3% in March as it views this as a positive sign and encouraging. According to Statistics South Africa (Stats SA), the rate has held its ground between 5% and 6% since September 2023. 'The main contributors to the 5.3% annual inflation rate are housing and utilities, miscellaneous goods and services, food and non-alcoholic beverages, and transport,' the Government Communication and Information System (GCIS) said on Thursday in a statement. The categories with the highest annual price changes in March were miscellaneous goods and services (up 8.5%), education (up 6.3%), health (up 6.0%) and housing and utilities (up 5.9%). 'To note, food inflation is at a three and a half year low, with bread and cereals registering a softer annual print of 5.0%, with bread flour, pasta, rusks, maize meal, ready-mix flour and white bread being cheaper than a year ago, which will benefit households,' the GCIS said. Source: Sout h African Government News Agency