The higher grain prices and a decline in cattle slaughtering activity over the past few months have started to transmit into the prices of products consumers pay when doing their groceries.

Although July 2021 consumer food price inflation of 7% y/y is unchanged from the previous month, there are clear signs in the underlying details that pressures are beginning to moderate.

The data released by Statistics South Africa this morning shows that consumer food price inflation slowed marginally to 5,9% in December 2021 from 6,0% in November.

Year-on-year inflation on Food and Non-alcoholic beverages accelerated to 5.7% in January, from 5.5% in December 2021. This was underpinned by an uptick in the price of cereals, bread, oils and fats, milk and eggs, and vegetables.