Inflation eases, but rice and coffee enthusiasts in South Africa face bad news
The Stats SA website reported that instant coffee, rice, and eggs experienced the largest price hikes over the past 12 months.
According to The South African website on Wednesday, annual consumer price inflation decreased to 4.6% in July 2024 from 5.1% in June 2024.
Pressure still present
According to the Stats SA website, the July inflation print is the lowest in three years since July 2021, when the rate was also 4.6%.
Lower annual rates were recorded for several product groups, most notably food and non-alcoholic beverages (NAB), transport, and housing & utilities.
However, inflationary pressure is still present in certain sectors.
Food inflation dips further
The annual rate for food & NAB was 4.5% in July, down from 4.6% in June.
Food & NAB registered a slowing inflation trend since its most recent high of 9% in November 2023 and is currently at its lowest since September 2020 (3.8%).
While overall food inflation has slowed, bread & cereals is showing upward momentum.
The category recorded an annual increase of 5.6% in July, up from June’s 5.2%.
Products with the largest annual increases in July include rice (up 21.3%), pizza or pies (up 11.6%) and samp (up 6.9%).
Maize meal prices rose on average by 5.1%.
On a positive note, bread flour, cake flour, pasta and macaroni are cheaper than a year ago.
Meat is the most heavily weighed food group in the inflation basket, taking up just over a third of household spending on food.
The price index for meat recorded a monthly decline of 0.4% and an annual rise of 1%.
Hot beverages continue to witness high inflation rates.
The price index for the category increased sharply by 17.6% in the 12 months to July, up from 16.5% recorded in June.
Large annual price increases were recorded for instant coffee (up 21.8%), drinking chocolate (up 17.7%), black tea (up 15.7%), ground coffee and coffee beans (up 14.6%) and rooibos tea (up 11.1%).
Cappuccino sachets recorded the lowest price increase in this category, rising by 7.6% over the same period.
The graphs below show food and beverage products that recorded the most significant annual and monthly price increases in July.
