Bad news for tea and coffee lovers in South Africa
The annual change in the consumer price index (CPI) was 5.1% in June, down from 5.2% in May. Inflation has remained within the 5% to 6% range for the past ten months.
The monthly rate was 0.1% in June.
Last month, Stats SA flagged rising coffee prices in South Africa, noting that the price of coffee, sugar and milk had increased by 82%, 72% and 37% respectively since January 2017.
For June’s inflation figures, the stats body noted that inflation for coffee, in particular, continued to surge.
Coffee inflation pushed higher from 17.9% in May 2024 to 20.7% in June, meaning it will cost households more to get their fix.
However, those looking for other warm drinks are also in trouble.
Tea drinkers are now also on the list of sufferers, with black tea also being a part of the surge. Inflation for tea is now up to 14.8%.
Hot chocolate fans, meanwhile, will be struggling with the winter weather, with price inflation surging to 16.4%.
Overall, the annual rate for hot beverages as a category steamed to 16.5% in June from 14.2% in May.
Annual food inflation is the lowest in 45 months
After stalling at 4.7% in April and May, the annual rate for food & non-alcoholic beverages (NAB) edged lower to 4.6% in June.
Food and NAB inflation has declined from its recent peak of 14.0% in March 2023. June’s reading is the lowest since September 2020 – 45 months ago, at the peak of the COVID-19 lockdowns—when the rate was 3.8%.
Several food and NAB categories registered lower annual rates in June, including sugar, sweets, and desserts; vegetables; fruit; milk, eggs, and cheese; and fish.
However, inflation quickened for hot beverages, bread and cereals, oils and fats, cold beverages, and meat.
The annual rate for bread & cereals saw its first increase in 14 months, rising to 5.2% in June from 3.9% in May.
The monthly rate was 1.5%, with notable increases for maize products such as maize meal (up 3.3%) and samp (up 3.0%).
For some context, the producer price index (PPI) for final manufacturing, which measures prices at the factory gate, recorded a 7.2% monthly (4.6% annual) increase for maize products in May.
Maize in the agriculture PPI increased by an annual 23.8%. PPIs are often leading indicators of the CPI, so the data suggest that elevated inflation for maize-based products is widespread.
The milk, eggs, and cheese category has experienced six months of slower inflation. The rate for June was 7.3%, down from 14.5% in December 2023. Annual egg inflation recorded its seventh consecutive month of decline, cooling to 20.4%.
The graphs below show food and beverage products that recorded the most significant annual and monthly price increases in June.
Other notable price changes
Housing & utilities recorded an annual inflation rate of 5.5% in June, lower than 5.8% in May.
Housing rentals are surveyed quarterly. Actual rentals increased by 0,8% in the second quarter of 2024 compared with the first quarter.
Imputed rentals edged higher by 0.7% over the same period. Townhouses recorded the highest quarterly change at 1.5% (actual rentals) and 1.2% (imputed rentals). Domestic worker wages registered a quarterly rise of 1.6%.
Annual transport inflation cooled to 5.5% in June from 6.3% in May. New vehicle inflation slowed to 5.2% from a recent high of 8.4% in September 2023.
Data from Naamsa indicates that there is lower demand for new passenger vehicles, with sales declining by 9.0% year-on-year in June.1 Inflation for used vehicles was 3.0%, down from 3.7% in May.
Fuel prices dropped by 4.6% between May and June, bringing the annual rate to 7.6% from 9.3%.
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