Statistics South Africa released the April Consumer Price Inflation (CPI) index on Wednesday, showing that costs increased 4.5% year-on-year, compared to 3.8% in March.
Fin24 reported that the big culprits behind the rise in inflation were price increases in product groups that attract specific taxes, namely alcohol, fuel and sugary drinks.
On April 1, both the added taxes on these items and the jump to 15% value added tax (VAT) rate became effective, although Stats SA said the full impact couldn’t be assessed in April. Some items calculated are zero rated, mitigating the effect of the increase.
Fin24 took a look at what you’re paying more, and less for.
The price of petrol was up 9% in April from 12 months ago, with private motorists, according to Stats SA, feeling the most pain. The petrol price hikes come amidst a higher international Brent Crude oil price and a 52c/l increase to the fuel levy in April.
Meat
Meat prices are up 9% but South African meat remains relatively cheap globally.
According to a study by British company Caterwings, SA beef per kilogram is about 40% cheaper than the world average.
Alcohol
‘Sin taxes’ are where government usually looks for extra revenue, and alcohol drinkers haven’t been spared. Beer prices are up 8% from a year ago, spirit coolers and wine increased 7.9% while spirit prices climbed 7.6%.
Primary and secondary education
Registered schools and institutions are exempt from levying VAT on the cost of education, but fees have risen on average 7.7% in the last year, outstripping the headline inflation figure of 4.5%.