How the cost of breakfast has increased in South Africa over the last year
South Africa’s inflation rate rose more than forecast in August 2019, as food prices grew at the fastest pace in more than a year.
Consumer price inflation increased by 4.3% year on year as at the end of August 2019. This was up from the 4.0% year on year increase in July.
“This now marks the ninth consecutive month that year on year inflation was at or below the midpoint of the target band and the twenty-ninth consecutive month that year on year inflation is below the top end of the target band,” said Luigi Marinus, portfolio manager at PPS Investments.
“Food and non-alcoholic beverages (0.6% to 0.7%), housing and utilities (1.2% to 1.3%), transport (0.4% to 0.5%) and recreation and culture (0.0% to 0.1%) each had a small increase to the contribution to year on year inflation, while the residual declined from -0.1% to -0.2%,” he said.
Breakfast
Notably ‘breakfast foods’ – including bread and cereals – were one of the biggest drivers of this increase.
Bacon and cream prices have also risen sharply over the last year, while the costs of eggs, margarine, and fruit have only fallen slightly.
The below graph shows how various breakfast foods have increased in price from August 2018 to August 2019:
Read: South Africa’s inflation rate rose more than forecast in August
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