The South African annual consumer price inflation, measured by the Consumer Price Index, reduced in December, easing to 5.1% from 5.5% in November. Picture: Pexels
The South African annual consumer price inflation, measured by the Consumer Price Index (CPI), reduced in December, easing to 5.1% from 5.5% in November.
According to research by Casey Sprake, investment analyst at Anchor Capital, on a month-to-month (MoM) basis, CPI was unchanged in December.
Core inflation (excluding the more volatile categories of food, fuel, and electricity prices) was steady at 4.5% year-on-year (YoY) in December, despite prices for housing and utilities, health and restaurants and hotels increasing.
Sprake said that core inflation has stayed subdued and that for 2023 it was 4.8%, noting that in 2022 it was 4.3%.
Food and non-alcoholic beverages prices declined for the first time in four months, showing it was at 8.5% YoY from 9.0% YoY in November, the research showed.
“The decline was supported by ongoing moderation in bread and cereals prices and favourable declines in vegetable prices,” according to Sprake.
Her research also found that meat prices did increase and this was mainly due to the high poultry prices.
The FAO Global Food Price Index (FFPI) noted that food commodities, declined by 1% MoM and by 10.4% YoY.
“Decreases in the price indices for cereals and meat more than offset an increase in the sugar price index, while those for dairy and vegetable oils only registered slight adjustments,” Sprake added.
Global wheat export prices also declined in January, this was driven by ardent competition among exporters and the arrival of recently harvested supplies in the southern hemisphere countries, according to Sprake.
The price of maize also decreased, due to better crop conditions and “the start of the harvest in Argentina and larger supplies in the US”.
According to the Household Affordability Index, from December 2023 to January 2024, the average cost of a household food basket increased by R86.66.
Data from the index showed that the average cost of a household food basket for January 2024 was R5,324.86. This was higher than the average cost of a household food basket which was R5,238.20 in December 2023.
The household affordability index by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) tracks food price data from 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba, and Springbok in the Northern Cape.
The cost of a Johannesburg basket increased by R13.68 month-on-month and increased by R488.49 year-on-year. The cost of a Johannesburg basket for January 2024 is R5,361.77.
The cost of a Durban basket increased by R149.17 month-on-month and increased by R387.39 year-on-year. The cost of a Durban basket for January 2024 is R5,362.38.
The cost of a Cape Town basket increased by R84.44 month-on-month and increased by R268.75 year-on-year. The cost of a Cape Town basket for January 2024 is R5,217.22.
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