The newly restructured basket of goods has seen additions of 71 new products and the removal of 53, making a total of 391 products in the index. File picture.
SOUTH Africans have been warned to brace for more swaarkry, with prices of staple foods set to hike.
According to early insights released by Joe de Beer, deputy director-general for economic statistics in the Department of Planning, Monitoring and Evaluation, cereal products such as mieliepap, bread and white rice show the most considerable price increase by weight.
As SA prepares for the unveiling of the revamped Consumer Price Index (CPI) tomorrow, there is growing concern about the increasing costs of staple food items.
The critical highlight from this assessment is the notable increase in maize meal – from 3 to 4.1 percent – with similar rises seen for brown and white bread and white rice, all going up half a percent.
Also worrying is that despite the drop from 2.5 to 1.8 percent in dairy products and eggs, poorer mense just cannot afford these essential nutritious foods.
De Beer said the new headline CPI will also come with the publication of additional tables that will include more details on these low level weights and different indices that go along with them.
He says: “I can’t share the CPI, but I can share that changes in the CPI are driven by changes in weights and not so much by the changes of the products in the basket. In most cases, changes in weights are relatively minimal.
“So, without getting into the prediction game, I don’t think there should be any concerns that there should be a way-out number published. We have to ask which segment typically buys these products.
“It is more towards the poor communities that will buy so much of the maize meal, breads, cooking oils. And on the downsize, there has been a significant drop in dairy, which includes milk and eggs.”
In 2023, household consumption expenditure reached slightly above R143 000, while the average annual household income was around R204 000.
As SA navigates these economic shifts, understanding the nuances of the CPI and its implications on food prices will be crucial in addressing food security and ensuring equitable access to essential goods for all.