By Richard Mantu, tel: (012) 314-2419

Consumer inflation excluding rates on mortgage bonds (CPIX) slowed to 3.1 percent in February this year as compared to 3.6 percent in January, Statistics South Africa reported today. 

The annual increase of 3.1 percent in the CPIX for historical and other urban areas is attributed to increases in price indices for housing (0.9 percent) medical care and health expenses (0.6 percent), food (0.4 percent) education (0.4 percent), transport (0.2 percent) and fuel and power (0.2 percent).

However, the annual increases were slightly counteracted by annual decreases in the price indices for clothing and footwear (- 0.1 percent) and recreation and entertainment (- 0.1 percent).

The lower CPIX figures means that the SA Reserve Bank, which uses inflation CPIX as measure of inflation target, is within the target range of between 3 and 6 percent. 

Stats SA also reported that Consumer Price Index (CPI) for historical metropolitan areas slowed to 2.6 percent in February as compared with 3.0 percent in January this year. 

The lower CPI is attributed to decreases in annual rate of CPI for transport that decreased from 3.8 percent at January to 1.2 percent in February and CPI for household operation that decreased from 2.5 percent to 0.1 percent. 

However, these decreases were slightly counteracted by an increase in the CPI for housing for which the rate increased from 3.2 percent in January 2004 to a higher rate of 3.4 percent at February this year. - BuaNews