Headline inflation cools but food remains sticky on the upside, up 9% y-y in NOV 2023

Loading player...
A big monthly decrease in the fuel price index by 5.5% in November underpinned the recent pullback in headline inflation. The annual fuel rate dropped to 1.8% in October from 11.2% in October which further saw the transport subindex falling from 7.4% previously to 4.3% in November 2023. Food inflation remained sticky on the upside, clocking 9% y/y in November from 8.8% in October underpinned by increases in the milk, eggs, and cheese, as well as fruit, vegetables, and sugar, sweets and deserts subindices. The food CPI however decelerated month-on-month (m/m) from 1.7% in October to 0.7% in November 2023. Meat inflation steadied at 0.6% m/m and only nudged 0.1 percentage point to 3.5% y/y contrary to expectations of a surge following the avian influenza (AI) outbreak and its potential knock-on effect on the supply of chicken. Most broiler meat producers have consistently indicated that domestic supplies were adequate to meet demand, and this helped counterbalance a potential AI-induced price surge.

Further, the South African authorities contemplated an easing of trade tools to improve availability of chicken meat and ease pressure on consumers, but this is yet to materialise partly due to representations by the industry regarding domestic stocks. The AI outbreak’s impact was more pronounced in the layer industry which saw a massive contraction in the supply of eggs. Egg prices surged by 10.9% m/m in November with the annual rate jumping from 24.4% y/y in October to a whopping 39.9% y/y in November 2023. Consequently, the milk, eggs and cheese CPI accelerated faster to 13.9% y/y in November from 12.4% y/y in October. Nonetheless, we expect the supply situation to improve in the medium term following current interventions by authorities to accelerate the importation of fertilised eggs and table eggs, including efforts to deal with the disease in future through vaccinations.
14 Dec 2023 12PM English South Africa Business News · Investing

Other recent episodes

Pivot Point: Shaping Africa’s Energy Future

Ndapwilapo Selma Shimutwikeni, Founder and CEO of RichAfrica Consulting, shares insights on transforming Africa’s natural resource potential into sustainable economic growth. We explore investment opportunities in oil and gas, the Orange Basin, Namibia’s energy policy, ESG strategies, and how African countries can better leverage natural resources for long-term development.
12 Mar 1PM 38 min

Standard Bank Group Posts Strong 2025 Results

Standard Bank Group has closed 2025 on a strong note, reporting headline earnings of R49.2 billion and a return on equity of 19.3%, hitting the top end of its ROE target range. CEO Simpiwe “Sim” Tshabalala joins us to unpack the drivers behind the bank’s performance, including growth in digital…
12 Mar 1PM 11 min

South Africa’s Mining Sector Off to a Strong Start

Stats SA reports a 4.6% rise in mining output and a 31.7% jump in mineral sales year-on-year for January. Mining analyst Peter Major breaks down which minerals are driving growth, whether gains are linked to prices or volumes, and what these trends mean for investors and the South African economy.
12 Mar 1PM 11 min

INSIDE YOUR POCKET: Retirement Under Pressure: Rising Debt Among Older South Africans

As South Africa’s population ages, more seniors are turning to credit to cover everyday expenses. Andrew Fulton, Director at Eighty20, explores the financial realities for “Humble Elders” and “Comfortable Retirees,” why defaults among seniors are rising, and what this means for families, policymakers, and the broader economy.
12 Mar 1PM 13 min

Sanlam Delivers Strong 2025 Results and Pan-African Expansion

South Africa’s leading financial services group, Sanlam, achieved record new business of R496 billion, with net client cash flows more than doubling. CFO Abigail Mukhuba discusses the group’s operational performance, Pan-African growth strategy, strategic acquisitions like Assupol and Shriram Finance, the launch of the ZARU stablecoin, and how the company…
12 Mar 1PM 11 min