{"id":657765,"date":"2023-01-19T16:46:42","date_gmt":"2023-01-19T14:46:42","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=657765"},"modified":"2023-01-19T16:46:42","modified_gmt":"2023-01-19T14:46:42","slug":"south-africans-waking-up-to-higher-prices-index","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/657765\/south-africans-waking-up-to-higher-prices-index\/","title":{"rendered":"South Africans waking up to higher prices: index"},"content":{"rendered":"<p>The pricing pressure on South African households is not letting up, with the price of food items in the country remaining stubbornly high despite headline inflation dropping slightly in December.<\/p>\n<p>The latest South African Breakfast Index &#8211; derived from the latest CPI data published by Stats SA &#8211; shows that it costs locals 11.5% more to fry up a traditional farmhouse breakfast compared to a year ago.<\/p>\n<p>The South African Breakfast Index is an index tracking the month-to-month prices of ingredients used to make breakfast in the country. The basket of items needed to make breakfast now totals R401.07 in December 2022, up 11.5% from R359.56 in December 2021.<\/p>\n<p>The index is an adaptation of similar indices created abroad. Used by Hard Assets Investor (HAI) in the US and Bloomberg in the UK, it is a price indicator that measures inflation in wholesale food prices.<\/p>\n<p>The prices used in the South African index come from Consumer Price Inflation (CPI) numbers tracked by Statistics South Africa. The reason breakfast is chosen is that it is a common meal that many households in the country would make and is reflective of the real impact of price inflation on daily life.<\/p>\n<p>Stats SA published the latest CPI data for December 2022 on Wednesday (18 December), showing a slight drop in inflation to 7.2% from 7.4% recorded in November.<\/p>\n<p>As has been the case for much of 2022, CPI is being driven by rising food prices and still-high fuel prices, with the former only decreasing slightly to 12.4% from 13.0% in November.<\/p>\n<p>According to Stats SA, bread and cereal products have had the most significant impact on overall food inflation, with the annual rate reaching 20.6% in December. This is markedly higher than the low of 1.5% recorded in January 2022. In fact, December\u2019s reading is the highest since February 2009 (23.8%).<\/p>\n<p>Maize meal prices rose by 33.7% in the 12 months to December, with a monthly increase of 1.9%. The index for rice increased by 1.3% between November and December, taking its annual rate to 7.8%.<\/p>\n<p>Meat inflation slowed to 9.7% in December from 10.5% in November. Oils and fats inflation cooled for the fourth consecutive month, declining to 22.4% in December.<\/p>\n<p><strong>Breakfast Index<\/strong><\/p>\n<p>It&#8217;s within the food inflation basket that the Breakfast Index is rooted.<\/p>\n<p>The basket includes ten items:<\/p>\n<ul>\n<li>Milk<\/li>\n<li>Coffee<\/li>\n<li>Sugar<\/li>\n<li>Eggs<\/li>\n<li>Bacon<\/li>\n<li>Sausage<\/li>\n<li>Mushrooms<\/li>\n<li>Tomato<\/li>\n<li>Margarine<\/li>\n<li>Bread<\/li>\n<\/ul>\n<p>Looking at the latest CPI data for December 2022, the overall cost to make breakfast (for however many people the basket could conceivably feed) is R401.07, up 0.3% month-on-month from R399.84 in November 2022.<\/p>\n<p>Year on year, the basket is up 11.5% from R359.56 in December 2021.<\/p>\n<p>The biggest price increases can be seen in instant coffee, which is up 21.6% from a year ago, with bread and tomatoes also seeing a significant jump of 18% to 19%.<\/p>\n<p>The smallest hikes are seen in eggs, which are only up 4.8%. In fact eggs, margarine and mushrooms are the only items in the basket that are within the targetted inflation range &#8211; under 6%<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-657791\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SABI-Year-on-Year-December-2022.png\" alt=\"\" width=\"588\" height=\"658\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SABI-Year-on-Year-December-2022.png 588w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SABI-Year-on-Year-December-2022-268x300.png 268w\" sizes=\"auto, (max-width: 588px) 100vw, 588px\" \/><\/p>\n<p>Month on month, the changes are less pronounced, but nevertheless, the basket saw some significant changes.<\/p>\n<p>Notably, Margarine was the biggest climber, with prices up 5%.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-657789\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SABI-Month-on-Month-December-2022.png\" alt=\"\" width=\"584\" height=\"663\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SABI-Month-on-Month-December-2022.png 584w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SABI-Month-on-Month-December-2022-264x300.png 264w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/p>\n<p>The table below outlines the price changes in the basket.<\/p>\n<div class=\"bt_table\">\n<div class=\"table-responsive\"><table class=\"table\" width=\"100%\" cellspacing=\"0\" cellpadding=\"6\">\n<tbody>\n<tr>\n<th bgcolor=\"#CCCCCC\" width=\"20%\">Breakfast item<\/th>\n<th bgcolor=\"#CCCCCC\" width=\"20%\">Quantity<\/th>\n<th style=\"text-align: center;\" bgcolor=\"#CCCCCC\" width=\"12%\">December 2021<\/th>\n<th style=\"text-align: center;\" bgcolor=\"#CCCCCC\" width=\"12%\">November 2022<\/th>\n<th style=\"text-align: center;\" bgcolor=\"#CCCCCC\" width=\"12%\">December 2022<\/th>\n<th style=\"text-align: center;\" bgcolor=\"#CCCCCC\" width=\"12%\">MoM%<\/th>\n<th style=\"text-align: center;\" bgcolor=\"#CCCCCC\" width=\"12%\">YoY%<\/th>\n<\/tr>\n<tr>\n<td>Loaf of brown bread<\/td>\n<td>700 grams<\/td>\n<td style=\"text-align: center;\">R13.97<\/td>\n<td style=\"text-align: center;\">R16.74<\/td>\n<td style=\"text-align: center;\">R16.61<\/td>\n<td style=\"text-align: center;\">-0.8%<\/td>\n<td style=\"text-align: center;\">+18.9%<\/td>\n<\/tr>\n<tr>\n<td>Bacon<\/td>\n<td>200 grams<\/td>\n<td style=\"text-align: center;\">R35.87<\/td>\n<td style=\"text-align: center;\">R39.44<\/td>\n<td style=\"text-align: center;\">R39.97<\/td>\n<td style=\"text-align: center;\">+1.3%<\/td>\n<td style=\"text-align: center;\">+11.4%<\/td>\n<\/tr>\n<tr>\n<td>Sausage<\/td>\n<td>Per kg<\/td>\n<td style=\"text-align: center;\">R90.48<\/td>\n<td style=\"text-align: center;\">R100.81<\/td>\n<td style=\"text-align: center;\">R101.37<\/td>\n<td style=\"text-align: center;\">+0.6%<\/td>\n<td style=\"text-align: center;\">+12.0%<\/td>\n<\/tr>\n<tr>\n<td>Full cream milk<\/td>\n<td>2 litre<\/td>\n<td style=\"text-align: center;\">R29.96<\/td>\n<td style=\"text-align: center;\">R33.77<\/td>\n<td style=\"text-align: center;\">R33.82<\/td>\n<td style=\"text-align: center;\">+0.1%<\/td>\n<td style=\"text-align: center;\">+12.9%<\/td>\n<\/tr>\n<tr>\n<td>Eggs<\/td>\n<td>6 eggs<\/td>\n<td style=\"text-align: center;\">R19.85<\/td>\n<td style=\"text-align: center;\">R20.61<\/td>\n<td style=\"text-align: center;\">R20.80<\/td>\n<td style=\"text-align: center;\">+0.9%<\/td>\n<td style=\"text-align: center;\">+4.8%<\/td>\n<\/tr>\n<tr>\n<td>Margarine<\/td>\n<td>500 grams<\/td>\n<td style=\"text-align: center;\">R34.87<\/td>\n<td style=\"text-align: center;\">R35.13<\/td>\n<td style=\"text-align: center;\">R36.87<\/td>\n<td style=\"text-align: center;\">+5.0%<\/td>\n<td style=\"text-align: center;\">+5.7%<\/td>\n<\/tr>\n<tr>\n<td>Tomatoes<\/td>\n<td>Per kg<\/td>\n<td style=\"text-align: center;\">R20.72<\/td>\n<td style=\"text-align: center;\">R25.35<\/td>\n<td style=\"text-align: center;\">R24.53<\/td>\n<td style=\"text-align: center;\">-3.2%<\/td>\n<td style=\"text-align: center;\">+18.4%<\/td>\n<\/tr>\n<tr>\n<td>Mushrooms<\/td>\n<td>250 grams<\/td>\n<td style=\"text-align: center;\">R27.28<\/td>\n<td style=\"text-align: center;\">R28.98<\/td>\n<td style=\"text-align: center;\">R28.66<\/td>\n<td style=\"text-align: center;\">-1.1%<\/td>\n<td style=\"text-align: center;\">+5.1%<\/td>\n<\/tr>\n<tr>\n<td>White sugar<\/td>\n<td>2.5kg<\/td>\n<td style=\"text-align: center;\">R46.94<\/td>\n<td style=\"text-align: center;\">R49.18<\/td>\n<td style=\"text-align: center;\">R50.27<\/td>\n<td style=\"text-align: center;\">+2.2%<\/td>\n<td style=\"text-align: center;\">+7.1%<\/td>\n<\/tr>\n<tr>\n<td>Instant coffee<\/td>\n<td>250 grams<\/td>\n<td style=\"text-align: center;\">R39.62<\/td>\n<td style=\"text-align: center;\">R49.83<\/td>\n<td style=\"text-align: center;\">R48.17<\/td>\n<td style=\"text-align: center;\">-3.3%<\/td>\n<td style=\"text-align: center;\">+21.6%<\/td>\n<\/tr>\n<tr>\n<td><strong>Total<\/strong><\/td>\n<td><\/td>\n<td style=\"text-align: center;\"><strong>R359.56<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>R399.84<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>R401.07<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>+0.3%<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>+11.5%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-657771\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022.png\" alt=\"\" width=\"882\" height=\"498\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022.png 1657w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022-300x169.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022-1024x578.png 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022-768x434.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022-1536x868.png 1536w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/SA-Breakfast-Index-December-2022-1200x678.png 1200w\" sizes=\"auto, (max-width: 882px) 100vw, 882px\" \/><\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/657207\/inflation-eases-in-south-africa-but-were-not-out-of-the-woods-yet\/\" rel=\"bookmark\">Inflation eases in South Africa \u2013 but we\u2019re not out of the woods yet<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New index shows the cost of living in South Africa climbing ever higher.<\/p>\n","protected":false},"author":10,"featured_media":645653,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[26],"class_list":["post-657765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/657765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=657765"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/657765\/revisions"}],"predecessor-version":[{"id":657811,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/657765\/revisions\/657811"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/645653"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=657765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=657765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=657765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}