8 issues which have grow to be costlier in South Africa in 2021 – together with large gasoline value will increase

Statistics South Africa has revealed its Client Worth Index (CPI) for November 2021, with inflation growing to five.5% from 5% in October.

That is the eighth consecutive month the place the annual enhance is increased than the midpoint (4.5%) of the South African Reserve Financial institution’s financial coverage goal vary. It’s also the most important annual enhance since March 2017 when the speed was 6.1%.

The transport class continues to be the most important issue behind inflation, recording an annual enhance of 15% in November. This makes it the one main group within the inflation basket with an annual charge above the 6% higher restrict of the South African Reserve Financial institution’s financial coverage goal vary.

“Gas costs elevated by 7.1% between October and November, taking the annual charge to 34.5%. The value of inland 95-octane petrol was R19.54 per litre in November 2021 in contrast with R14.59 in November 2020,” StatsSA mentioned.

“The diesel index elevated by 35.1% over the identical interval. The common value of diesel was R18.75 per litre in November 2021 in contrast with R13.89 per litre in November 2020.”

The primary contributors to the 5.5% annual inflation charge have been meals and non-alcoholic drinks; housing and utilities; transport; and miscellaneous items and companies. A few of the largest annual value will increase (November 2020 vs November 2021) have been recorded for the next items and companies:

  • Gas costs: +35%
  • Oils and fat: +21%
  • Electrical energy and different fuels: +14%
  • Meat: +8.5%
  • Public transport: +8.3%
  • Wine: +7.2%
  • Eating places: +5.9%
  • Insurance coverage: +5%

Meals inflation slowed in November

Costs for meals and non-alcoholic drinks recorded an annual enhance of 5.5% and a month-to-month rise of 0.1%. This annual enhance is the bottom in 9 months – since February 2021 when the speed was 5.2%, StatsSA mentioned.

A few of the most notable adjustments in grocery costs embody:

  • Bread and cereal merchandise recorded above-average value will increase of 0.5% between October and November.  White bread costs elevated by 1.2% and brown bread by 1.4% on this interval.
  • Meat inflation slowed for the third consecutive month, recording an annual rise of 8.5%, down from 10.7% recorded in August 2021.
  • Rooster and beef merchandise registered the biggest annual will increase in November. Worth will increase have been recorded for IQF rooster parts (up 13.7%), rooster giblets (up 7.7%), beef offal (up 14.6%) and beef mince (up 5.1%).
  • Oils and fat have been a notable issue behind increased meals inflation over the previous 12 months. The year-on-year enhance of 21% in November 2021 is barely up from the 20.9% recorded in October 2021.
  • ‘Different’ meals, which incorporates condiments, spices and child meals, has seen a gradual enhance in its annual charge to achieve 6.1% in November from a low of 1.5% in February this yr. Particular merchandise displaying giant annual will increase are soup powder (7%), spices (7.4%), salt (9.8%), mayonnaise (13.7%) and vinegar (9.7%).

Learn: Index exhibits South Africa’s financial system is shrinking

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