Good news for SA’s food inflation

Bloomberg’s Shisa Nyama Index shows that inflation may have peaked, which is good news for consumers who have been paying increasingly more for food over the past few months.

The cost of a traditional braai increased moderately in January after it dropped sharply in December. This confirms the forecasts of the South African Reserve Bank (Sarb) that punchdrunk consumers may continue to see food prices ease.

According to the index, the average price increase for a backyard braai was 6.2% in January compared with a year ago, the same as December, but significantly less than the 10% recorded in November.

This correlates with the 8.5% year-on-year increase in food prices in December measured by Statistics SA. The Sarb forecasts food inflation to average 5.7% this year. The biggest contributors to keep the index steady as they eased were onions, cooking oil and samp.

Year-on-year price changes in the index are:

10kg of onions were 26.6% cheaper;

A five-litre bottle of cooking oil was 15% less;

5kg of samp was 0.8% cheaper;

30kg of maize meal cost 0.9% more;

2kg of beef cost 1% more;

2kg of wors cost 2.4% more;

8 bunches of spinach cost 5.5% more;

10kg of chicken portions cost 5.5% more;

10kg of carrots cost 10.5% more;

200g of curry powder cost 12.8% more;

6kg of tomatoes cost 15.8% more;

1kg of salt cost 15.8% more;

2kg of green peppers cost 27.9% more; and

10kg of potatoes cost 32.1% more.

These amounts and prices are for four people for a month.

The index that crunches data from the Pietermaritzburg Economic Justice and Dignity group, tracks the prices of 14 key ingredients in braais consumed in South African townships.

Its data collectors track food prices in 47 supermarkets and 32 butcheries targeting the low-income market in the greater areas of Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok in the Northern Cape.