{"id":785242,"date":"2024-08-01T15:04:55","date_gmt":"2024-08-01T13:04:55","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=785242"},"modified":"2024-08-01T15:05:01","modified_gmt":"2024-08-01T13:05:01","slug":"great-news-for-braai-lovers-in-south-africa-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/785242\/great-news-for-braai-lovers-in-south-africa-2\/","title":{"rendered":"Great news for braai lovers in South Africa"},"content":{"rendered":"\n

Along with lower food price inflation for June, the latest data from the Pietermaritzburg Equity Justice and Dignity (PMGEJD) group shows that the cost of having friends over for a braai is also coming down.<\/p>\n\n\n\n

This is contained in the latest Braai index, compiled by Bloomberg.<\/p>\n\n\n\n

According to the group, the falling price of pap has delivered good news and will help the South African Reserve Bank consider interest rate cuts.<\/p>\n\n\n\n

Sticky food inflation has been one of the reasons the SARB has been hesitant to ease policy, though two of its six policymakers wanted a cut last month, signalling a reduction could be part of the debate when they meet in September.<\/p>\n\n\n\n

Cooling food prices may help make that case.<\/p>\n\n\n\n

Bloomberg\u2019s Braai Index, an early guide on which way food inflation may be headed, showed the average cost of a backyard barbecue fell 0.4% in July from a year earlier.<\/p>\n\n\n\n

The main drivers of the decline were a drop in the prices of onions, cooking oil and corn meal.<\/p>\n\n\n\n

The central bank has held rates at a 15-year high of 8.25% since mid-2023 and vowed not to adjust policy until price pressures were heading sustainably to the midpoint of its 3% to 6% target range.<\/p>\n\n\n\n

South Africa\u2019s official headline consumer prices rose an annual 5.1% in June, with food and non-alcoholic beverages advancing 4.6%. July inflation data will be released on 21 August.<\/p>\n\n\n\n

\u201cSlower food inflation in South Africa has contributed to the overall deceleration of headline CPI, giving the SARB comfort that the midpoint of 4.5% will be met,\u201d said Razia Khan, Standard Chartered Bank’s chief economist for Africa and the Middle East.<\/p>\n\n\n\n

Kom ons braai<\/strong><\/p>\n\n\n\n

The index comprises food items that are most commonly used when having a braai, including the meat (Beef, worse, chicken portions), vegetables (spinach, carrots, tomatoes, potatoes, onions, green pepper) and others (samp, maize, curry powder, salt).<\/p>\n\n\n\n

To compile its survey, the PMBEJD\u2019s data collectors track food prices on the shelves of 47 supermarkets and 32 butcheries that target the low-income market in the greater areas of Johannesburg, Durban, Cape Town, Pietermaritzburg, Springbok in the far northwest and the far northeastern town of Mtubatuba.<\/p>\n\n\n\n

The month-on-month index showed prices for a braai coming down by 1.2%. Year-on-year, prices were down 2.2%.<\/p>\n\n\n\n

Month-on-month index change [-1.2%<\/mark>]<\/strong><\/p>\n\n\n

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Year-on-year index change [-2.2%<\/mark>]<\/strong><\/p>\n\n\n

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Food prices in South Africa<\/strong><\/p>\n\n\n\n

The PMBEJD’s data shows that, outside the braai index, food price inflation is flat month-on-month and has come down significantly year-on-year at only 3.3%.<\/p>\n\n\n\n

In July 2024, the average cost of the group’s Household Food Basket was recorded at R5,252.15. This is down R0.62 (-0.0%), from R5,252.77 in June 2024, and up R170.21 (3.3%), from R5,081.94 in July 2023.<\/p>\n\n\n\n

There were 22 foods that increased in price and 22 foods that decreased in price.<\/p>\n\n\n\n

Foods in the basket which increased in price in July 2024 by 5% or more, include: samp (6%), eggs (5%), and green pepper (6%).<\/p>\n\n\n\n

Foods in the basket which increased in price in July 2024 by 2% or more, include: maize meal (2%), rice (3%), chicken livers (2%), cremora (2%), apples (2%), peanut butter (3%), white bread (3%), and brown bread (2%).<\/p>\n\n\n\n

Foods in the basket which decreased in price in July 2024, by 5% or more, include: tomatoes (-8%), carrots (-9%), butternut (-6%), spinach (-6%), and oranges (-5%).<\/p>\n\n\n\n

Foods in the basket which decreased in price in July 2024, by 2% or more, include: onions (-2%), curry powder (-4%), soup (-2%), tea (-4%), chicken gizzards (-2%), wors (-2%), beef tripe (-2%), cabbage (-4%), polony (-2%), and apricot jam (-2%).<\/p>\n\n\n\n

Regional differences<\/strong><\/p>\n\n\n\n

In July 2024, food baskets decreased in Joburg, Cape Town, Springbok and Pietermaritzburg. Food baskets increased in Durban and Mtubatuba. <\/p>\n\n\n\n