Inflation fell sharply in October to 2.8% from 3.8% in September, to reach the lowest point since June 2020 during the Covid-19 pandemic, when the inflation rate was 2.2%.

According to Statistics SA, which announced the inflation rate for the month of October Wednesday morning, lower fuel prices remain the main factor behind the slowdown.

Gasoline and diesel prices decreased by 5.3% between September and Octoberbringing the annual fuel rate to -19.1%.

The price for 95-octane gasoline inside October was 21.05 lei, the cheapest since February 2022, when the price was 20.14 lei.

The aggregate transport index fell by 5.3% year-on-year, dragging headline inflation down by 0.8 percentage points.

Food inflation also eased after holding steady for six months in the 4.5-4.7% range, with annual food and non-alcoholic beverages inflation falling to 3.6% in October. This is the lowest rate since November 2019, when it was 3.5%).

Statistics SA says inflation cooled for most food and non-alcoholic drink subcategories in October, except for sugar, sweets and desserts and cold drinks.

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Food inflation shows staples are cheaper but sweet things cost more in October

The bread and cereal price index fell 0.5 percent between September and October, pulling the annual rate to 4.6 percent, Statistics SA said.

A range of bread and cereal products was cheaper in October than in September.

Most importantly, the price of cornmeal fell 2%, marking the third consecutive month of decline. Consumers also paid less, on average, for other key products such as spaghetti, macaroni, rice and samp.

Annual inflation for milk, eggs and cheese also fell sharply to 4.1% in October from 6.9% in September. According to Statistics SA, the monthly rate was -0.2%, with price decreases for dairy products, yogurt and cheddar cheese.

However, against the trend, prices for cream, sour milk, eggs and buttermilk were higher in October compared to September.

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Consumers with a sweet tooth paid more

Consumers with a sweet tooth paid more for sugar, sweets and desserts, but this category posted an annual rate of 6.9%, which is significantly lower than the recent high of 18.5% recorded in February of this year.

The price index for the category rose by 1% between September and October, with chocolate, jam and white sugar posting relatively large increases.

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Hot and cold drinks are more expensive

Although hot drinks continued to have the highest inflation print of all food and non-alcoholic beverages categories, at 14.1%, the rate was down from 17.6% in July.

The monthly rate was 0.8% in October, with notable price increases for instant coffee, drinking chocolate and black tea, but cappuccino bags were slightly cheaper.

According to Statistics SA, the cold drinks index rose by 1.1% between September and October, taking the annual rate from 5.7% to 7.0%.

Consumers paid more for fizzy drinks and mineral water, but dairy mixes and fruit juice concentrates were cheaper.

This chart shows the food and drink products that saw the most significant price changes in October: