Rampant food price increases continue in South Africa but appear to be easing marginally, according to the South African Shisa Nyama Index which measures the cost of a basket of goods for a traditional backyard braai in townships and rural areas (*).
Using data from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the Index tracks the prices of key ingredients in a shisa nyama — corn meal, onions, carrots, tomatoes, curry powder, salt, frozen chicken portions, beef and wors.
From a staggering high of 19% year-on-year (y-o-y) in February the basket rose 12% y-o-y in May, meaning three months of slowdowns.
Continuing that trend will ease consumers’ financial stress exacerbated by high fuel prices, widespread unemployment, daily electricity outages and a stagnating economy.
Consumer prices rose 6.8% y-o-y in April, down from 7.1% the previous month, with food prices rising 14.3%, according to Statistics South Africa. May data is scheduled to be released on 21 June.
The PMBEJD’s data collectors also track food prices on the shelves of 44 supermarkets and 30 butcheries that target the low-income bracket in the greater areas of Johannesburg, Durban, Cape Town, Pietermaritzburg, Springbok in the far northwest and the far north-eastern town of Mtubatuba.
The cost of three items in the index — green peppers, cooking oil and samp - fell in May from the month before.
With continuing electricity constraints and increasing food manufacturing costs by major companies in that sector, there’s no guarantee that the downward trajectory in food inflation will be maintained. SOURCE: By Renee Bonorchis, Bloomberg
* Shisa nyama and braai – barbeque.
