Inflation down in November, but food is up – here are the culprits

Inflation slowed to 5.5% in November after three months of increases, mainly thanks to lower fuel prices and therefore lower transport prices.

However, annual food inflation accelerated to a four-month high of 0.9%.

According to Statistics SA, the drivers behind the high annual inflation for food & non-alcoholic beverages were the prices of meat and chicken as well as eggs and fruit.

Household maintenance services increased 7.5%, while the prices of various medicines also increased.

The monthly change in the consumer price index was -0.1%. The decline was mainly driven by a monthly decrease of 5.5% in the fuel price index, which drove the annual rate for fuel lower to 1.8% in November from 11.2% in October, leading to a reduction in the annual rate for transport, which decreased to 4.3% from 7.4%.

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Food and non-alcoholic beverages inflation still high

However, Inflation for food and non-alcoholic beverages still hit consumers’ pockets. Meat inflation crept up to 3.5% from 3.4% in October as meat prices usually increase at this time of year.

The outbreak of avian flu continued to disrupt the poultry market, with the annual rate for individual quick frozen chicken pieces increasing 7.3% in November, up from 5.5% in October. Other frozen chicken prices increased 9.1% in November.

Also due to the avian flu, egg prices continued to boil, heating by a monthly 10.6%. Pushing the annual rate for eggs higher to 39.9% from 24.4% in October. This is bad news for consumers who usually rely on chicken and eggs for protein as they are unable to afford meat.

In addition, fruit products recorded an annual increase of 11.5% in November, the highest reading since December 2020 when the rate was 11.8%.

Consumers with a sweet tooth also did not get off lightly. The annual print for sugar, sweets and desserts was 18.,5%, up from October’s 17.6%. White sugar prices increased 21.4% in the 12 months to November, while the price of brown sugar increased 23.7% and the price of chocolate slabs 11.8%.

The price index of hot beverages increased 11.4% in the 12 months to November. Apart from August, the annual inflation rate for instant coffee was in double digit territory since March 2022.

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Prices of bread and cereals and onions down

Fortunately, there were some food prices that decreased. Annual inflation for bread and cereals declined for the seventh consecutive month to 8.5% from 8.8% in October. Vegetable inflation also eased slightly to 23.5% from 23.6% in October.

The prices of onions declined for a fifth straight month, decreasing 6.1% in November compared to October. Consequently, the annual rate for onions cooled to 2.5%, much lower than the eye-watering peak of 64.5% recorded in June.

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Consumers forking out more for plumbers and electricians

Other notable price changes in November included household maintenance services, that include rates for plumbers and electricians, whose rates are surveyed in May and November. This category registered an annual rate of 7.4% in November, the highest rate since the current CPI series began in 2008.

Pharmaceutical products also recorded an annual price increase of 7.5%, with non-prescription medicine products registering high inflation rates. The prices of vitamin and mineral supplements increased 13.2%, heartburn medication 12.6%, pain killers 12.3% and cough syrup by 10.3%.