Why lower CPI won’t mean lower healthcare costs for South Africans
Medical inflation outpaces CPI because of unique pressures such as the rising costs of technology, chronic diseases, and private healthcare pricing.
Medical inflation outpaces CPI because of unique pressures such as the rising costs of technology, chronic diseases, and private healthcare pricing.
Contribution increases in 2025 are exceeding CPI, with some medical schemes aiming to rebuild reserves and ensure long-term sustainability.
The Council for Medical Schemes has advised medical schemes to limit their contribution increases for 2025 to 4.4% plus ‘reasonable’ utilisation estimates.
The annual inflation rate remained unchanged at 5.2% in May, but it is still some way from the Reserve Bank’s target of 4.5%.
Headline inflation softened to 5.2% in April, but the upside risks remain, particularly from food prices.
The drier El Niño weather pattern is emerging as one of the biggest risks to the outlook for food inflation.