Overall inflation for food and non-alcoholic beverages fell from 3,6% in October to 2,3% in November, marking the lowest inflation for the category since December 2010, when it stood at 1,6%.
According to the statistics, 11 food and non-alcoholic groups registered lower annual rates, including vegetables, milk, eggs and cheese, hot beverages, bread and cereals, cold beverages, meat, sugar, sweets and desserts, and the miscellaneous category ‘other food’. Fish inflation was flat, while oils and fats and fruit recorded steeper price increases.
The annual rate for bread and cereals moderated to its lowest level in almost three year, whereas annual milk, eggs and cheese inflation declined to its lowest level in almost 5,5 years.
Inflation on alcoholic beverages increased by 4,3% y/y.
Paul Makube, senior agricultural economist at FNB Commercial, said the global food price inflation as measured by the United Nations Food and Agriculture Organization was higher at 5,7 y/y in November, but slowed monthly to 0,5% from 1,8% the previous month.
Global meat inflation, however, remained in deceleration mode at 5,9% y/y in November from 6,3% y/y in October, and deflation at 0,8% month-on-month.
Makube said the lower meat prices compared to a year ago was good news for consumers as they ramped up purchases for December festive braais, as well as for farmers.
“The slight improvement in consumers’ financial welfare following the recent interest rate easing of 25 basis points and the liquidity injection in the economy due to the two-pot retirement withdrawals will boost meat demand during the braai season.”
He said a drilldown into consumer price index data showed modest decreases across the red meat complex y/y, with beef rump steak decreasing by 1,5% or R2,44, beef chuck by 0,6 or 68c/kg, beef T-bone by 1,8% or R2,31/kg, pork chops by 3,5% or R3,21/kg, and pork ribs by 4,1% or R4,11/kg.
Chicken was however an exception, with individually quick frozen 2kg chicken portions increasing by 2,8% or R2,60/kg.
Makube said he saw a further reprieve for meat lovers early in the new year as lower seasonal demand after the December holidays should place downward pressure on meat prices.
