Inflation in South Africa was 5.9% in March 2022, up from March 2021 (6.1%). The biggest increase for these goods came in the price of food & non-alcoholic beverages with an increase of 6.2%.
The difference in Feb. 2022 was even greater than it was in Feb. 2021, and they’re wondering what will happen to inflation after that. Inflation in Feb. marginal increases overall but rises significantly with food-related items such as utility bills & groceries – definitely an indicator of how much the economy has shifted since it started slowing down six years ago.
Owing to high food price inflation, the financial situation of households is worse than we can understand. It impacts poorer individuals the most and is one of the main causes of poverty-related problems.
South Africa experienced high annual food price inflation from 2009 to 2022 reaching its highest level in February 2009 compared to the previous year.
What’s in the basket south Africa?
The spending basket of South African households includes a lot of other items too, such as personal care products with a weight of 2 out of 100 in the headline CPI, cleaning materials and maintenance products (0.35), and alcoholic beverages (1/70).
Most households spend about the same total amount each month, so the CPI provides an “average expenditure”
On the same basis of “average” expenditure, the weight of household expenditure on food and non-alcoholic beverages differs considerably from the 17,14 used in the headline inflation.
The high-income earners are more likely to have a larger overall weight compared to lower-income earners.
This confirms that the cost of food does not just affect high-income earners – it also affects low-income earners, even in areas where food price increases are greater.
