{"id":627192,"date":"2022-09-21T10:57:56","date_gmt":"2022-09-21T08:57:56","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=627192"},"modified":"2022-09-21T10:57:56","modified_gmt":"2022-09-21T08:57:56","slug":"new-inflation-data-is-bad-news-for-food-prices-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/627192\/new-inflation-data-is-bad-news-for-food-prices-in-south-africa\/","title":{"rendered":"New inflation data is bad news for food prices in South Africa"},"content":{"rendered":"

Statistics South Africa has published its latest consumer price index, showing that annual consumer price inflation remains above the upper limit of the Reserve Bank\u2019s target range for a fourth consecutive month.<\/p>\n

Annual consumer price inflation was 7.6% in August 2022<\/strong>, down from 7.8% in July 2022. The consumer price index increased by 0.2% month-on-month in August 2022.<\/p>\n

Consensus among economists polled by Bloomberg was for a rate of 7.5%, while more optimistic analysis from the Bureau for Economic Research pegged the rate at 7.3%.<\/p>\n

A more positive angle on the number is that annual inflation has dropped from the figure reported in July 2022, indicating that inflation could start a downward trend, having peaked as some economists projected.<\/p>\n

The reality, however, is that the rate remains among the highest readings since May 2009 (8%), and key items in the basket that have the biggest impact on household budgets – food and fuel – are climbing even higher.<\/p>\n

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The main contributors to the 7.6% annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services.<\/p>\n

Food and non-alcoholic beverages increased by 11.3% year on year and contributed 1.9 percentage points to the total CPI annual rate of 7.6%.<\/p>\n

Housing and utilities increased by 4% year on year and contributed 1.0 percentage points. Transport increased by 21.2% year on year and contributed 2.9 percentage points. Miscellaneous goods and services increased by 3.7% year-on-year and contributed 0.6 of a percentage point.<\/p>\n

In August, the annual inflation rate for goods was 10.9%, down from 11.5% in July; and for services, it was 4.3%, up from 4.2% in July.<\/p>\n

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What costs more?<\/strong><\/p>\n

Inflation is still being driven by rising food and fuel prices, with food inflation hitting even higher in August at 11.5% (up from 10.1% in July).<\/p>\n

Oils and fats and bread and cereals are again the biggest cause of higher food inflation. The former climbed higher to 37.6% (up from 36.2% in July), while the latter jumped to 17.8% (up from 13.7% in July).<\/p>\n

However, it’s almost the entire food basket that has seen higher inflation: vegetables, sweets, beverages, and both processed and unprocessed foods are all more expensive.<\/p>\n

The only food categories to come down slightly are fish and meat products – but these remain far outside the target band at 9.2%.<\/p>\n

A similar case is made for fuel inflation, which has eased to 43.2% (from 56.2% in July) but remains the highest item in the inflation basket.<\/p>\n

High fuel inflation has a knock-on effect on things like public transportation costs, which also climbed higher in August to 23.6%.<\/p>\n

The list below shows which basket items are above August’s inflation number<\/span> and those which fall outside the target band<\/span>.<\/p>\n