Inflation eases in November – but food prices shoot up even higher
Annual consumer price inflation was 7.4% in November 2022, down from 7.6% in October 2022, according to the latest data published by Stats SA.
However, consumers are likely to continue to feel the pain at the tills, with food prices, in particular, shooting up even higher.
The main contributors to the 7.4% annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services.
Food and non-alcoholic beverages increased by 12.5% year-on-year – from 12.0% in October – and contributed 2.1 percentage points to the total CPI annual rate.
Housing and utilities increased by 4.3% year-on-year, and contributed 1.1 percentage points. Transport increased by 15.3% year-on-year, and contributed 2.2 percentage points.
Miscellaneous goods and services increased by 4.8% year-on-year, and contributed 0.7 of a percentage point.
In November, the annual inflation rate for goods was 10.4%, down from 10.5% in October; and for services, it was 4.5%, down from 4.6% in October.
Big increases
Even though headline inflation has eased from the surprising climb in October, consumer prices remain at elevated levels outside the South African Reserve Bank’s target range of 3% to 6%.
As has been the case for most of the year, fuel prices have seen the highest levels of inflation, though they have come down in recent months. The high cost of fuel has bled into other sectors, however, with public transport inflation now at 20.5%.
Oils and fat, as well as cereals and grains have also seen high levels of inflation due to the Russia-Ukraine war, and these prices remain elevated with inflation at 24.8% and 19.9%, respectively.
According to Stats SA, the annual rate of change for the oils & fats index declined for the third consecutive month, decreasing from 25.7% in October. The average price for a 750 ml bottle of sunflower oil was R38.12 in November, lower than the peak of R45.33 recorded in July.
High food costs have also bled into other sectors – such as restaurants, which have seen price inflation at 7% in November.
Meanwhile, it’s looking to be an expensive holiday season, with hotels and package holidays also seeing elevated inflation levels at 10.1% and 8.7%, respectively.
The annual rate for meat was 10.5% in November, unchanged from 10.5% in October. Bacon and other pork products increased by 6.4% and 1.9%, respectively, between October and November.
Prices of milk, eggs & cheese products rose by 10.9% in the 12 months to November, slightly higher than the rate recorded in October (10.5%).
These are the biggest year-on-year price jumps that sit outside the SARB’s target range:
- Fuel: 25.3%
- Oils and fat: 24.8%
- Public transport: 20.5%
- Processed food: 15.8%
- Bread and cereals: 19.9%
- Hot beverages: 13.9%
- Other food: 12.9%
- Milk, cheese and eggs: 10.9%
- Meat: 10.5%
- Fish: 10.5%
- Hotels: 10.1%
- Unprocessed food: 9.9%
- Personal care: 9.0%
- Vegetables: 8.8%
- Package holidays: 8.7%
- Sweets, sugars and desserts: 8.6%
- Other running costs for vehicles: 8.4%
- Electricity and other fuels: 7.3%
- Spirits: 7.9%
- Cold beverages: 7.1%
- Restaurants: 7.0%
- Beer: 7.0%
- Wine: 6.4%
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