The main reason for this drop is a sharp decline in fuel prices.
Statistics South Africa reported that petrol and diesel were nearly 10% cheaper compared to the same time last year, with prices falling by more than 5% in just one month.
Food prices have also become more affordable, with average food inflation cooling to 3.6%. This is a relief for households, as food prices had been stuck between 4.5% and 4.7% for around half the year.
For context, food inflation hasn’t been this low since November 2019. Staples like maize meal became 2% cheaper in October alone, showing that some everyday costs are finally easing.
For consumers, these trends mean better affordability in critical areas like transportation and groceries, which are significant parts of most household budgets.
However, this doesn’t mean we can celebrate just yet. Inflation trends can change, and future conditions will depend on how the Reserve Bank manages the economy through monetary policy. There are also threats of oil price increases and the possible impact of Mr Donald Trump’s coming Presidency in the USA.
Still, after months of high living costs, this feels like good news.