Ricochet News

Consumer Price Index March 2015 increases to 4%

APRIL 22, 2015
Consumer Price Index March 2015 increases to 4%

The Consumer Price Index (CPI) increased to 4% year-on-year (y/y) in March, up from 3.9% in February - and ending six months of consecutive decreases in the y/y rate, Stats SA announced on Wednesday. Stats SA announced its CPI on Twitter and did not give a full report, as its website is currently down.

The increase is roughly in line with expectations, as the Reserve Bank indicated at the last Monetary Policy Committee, where it said it has upwardly revised its average inflation for this year and the next.

Stats SA said that the food and non-alcoholic beverages rose by 0.8% between February and March. The alcoholic beverages and tobacco increased by 2.7%.

The housing and utilities index increased by 1.1 %, but this would edge up as the increase in electricity and post office tariffs have not kicked in.

The transport index rose 3.1%, a reflection of the 96c per litre petrol price increase while the education index rose 9.3%, still one of the fastest rising alongside medical inflation.

The Reserve Bank warned that it will raise interest rates if inflation continues to rise and threatens to breach the upper range of the 3% to 6 %.