CPI drops, except in sweets: Stats SA

File: Ice-cream and chocolate prices increased by 2,4 percent and 2,7 percent respectively.

File: Ice-cream and chocolate prices increased by 2,4 percent and 2,7 percent respectively.

JOHANNESBURG - Stats SA said the Consumer Price Index (CPI) has dropped overall.

The CPI measures monthly changes in prices for a range of consumer products. Changes in the CPI record the rate of inflation.

It can also be used as a cost-of-living index.

READ: CPI down to its lowest level since March 2015

Consumer inflation has fallen sharply to a level sought after by the Reserve Bank.

It dropped to 4.5 percent in December from 5.2 percent in the month before.

On average, prices decreased by 0,2 percent between November 2018 and December 2018.

READ: South Africa's CPI rises to 4.6 percent in June: Stats SA

Ice-cream and chocolate prices increased by 2,4 percent and 2,7 percent respectively.

Falling fuel prices and moderate food inflation were credited as the main drivers behind the 0,7 percentage point drop in December. 

A lower inflation outlook supports the case for the Reserve Bank to cut interest rates or leave them steady.

Last week, the bank left rates unchanged, citing a better outlook for price increases.