Consumer inflation down but food inflation up – economist

South Africa’s consumer inflation (CPI) for September was marginally down at 4,1% year-on-year, compared with the 4,3% recorded in August, according to data from Statistics South Africa (Stats SA).

Consumer inflation down but food inflation up – economist
The consumer inflation rate for September is well within the South African Reserve Bank’s target range of 3% to 6%, according Paul Makube, senior agricultural economist at FNB Agribusiness.
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South Africa’s consumer inflation (CPI) for September was marginally down at 4,1% year-on-year, compared with the 4,3% recorded in August, according to data from Statistics South Africa (Stats SA).

According to Paul Makube, senior agricultural economist at FNB Agribusiness, this figure was comfortably within the South African Reserve Bank’s target range of 3% to 6%.

The product groups that carried the largest weight in the inflation basket, such as food and non-alcoholic beverages, housing and transport, have had the most influence on keeping the headline rate at modest levels, according to a statement by Stats SA.

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Prices of food and non-alcoholic beverages increased 3,9% year-on-year, and contributed 0,7 of a percentage point to the total CPI.

According to Makube, this was driven by the disinflation in bread and cereals, milk, eggs and cheese, oil and fats, and sugar categories, which fell 8,5%, 2,1%, 4,1% and 5,2% respectively year-on-year.

The meat categories, however, fared a bit better, increasing 1,1% year-on-year.

According to Makube, there were some price increases in the meat market particularly for pork, due to the recent African swine fever (ASF) outbreak, which resulted in the large-scale culling of pigs in Asia, increasing import demand.

“Nonetheless, consumers’ subdued disposable incomes limited further gains in the meat complex with inflation just up 1,1% year-on-year.”

He highlighted that seasonal demand trends would, however, help lift prices in the medium term.

 

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Jeandré Du Preez is the newest addition to the Farmer’s Weekly team. Originating from a Riversdal farming family, she has farming in her blood. After school she furthered her studies at Stellenbosch and has been working as an agricultural journalist for the past two years. She says she feels privileged to write about an industry paramount to the survival of all South Africans and is inspired by the innovative solutions with which the farming community bridges the many challenges they face. She enjoys being able to combine work with travel and appreciates the modesty and friendliness with which South Africa’s farmers share their accomplishments. She enjoys being able to combine work with travel and appreciates the modesty and friendliness with which South Africa’s farmers share their accomplishments. If she is not writing or visiting farms, you’ll find her relaxing with a good mystery novel or exploring her other passions: travelling and cooking.