Earlier last week STATSSA announced that the Headline CPI went up to 3.7% hitting the highest record since 4.1% penned in March this year. The monthly increase in October was 0,3%, edging up from 0,2% recorded in both September and August.
The major contributors were categories such as food and non alcoholic beverages which increased by 1.3% on basis and annual surge of 5.4% all in October, this is the largest annual upsurge since September 2017.
Let’s now examine how all categories have been pricing their products and services both in October and previous 12 months
Pensioners
Prices for pensioners increased by 0.3% monthly which brought upon 3.4% annual increase in October.
Food and non alcoholic beverages
Prices of Food saw a monthly surge of 1.4% and annual rise of 5.4%. The major contributors to this surge came from Oil & fats (2.8%) and (10.0%) annual, Fruit (2.8%) and (13.5%) annual and vegetables(3.5%).
Prices for Non alcohol beverages went up by 1.2% monthly and 3.4% annually. The change was induced by increases of (1.5%, monthly & 6.3% annually) in hot beverages with main driver behind this upsurge prices being black tea. Black tea prices jumped by 3,9% in October compared with September, resulting in an annual rise of 10,4%. and (1.2%, monthly & 1.9%, annually) in cold beverages
Alcoholic beverages and tobacco
Bare in mind the change reflected in these prices disregards activities occurring in the informal market thus, the overcharging of alcohol & tobacco on the informal trade market that customers quarrelled about aren’t accounted for.
The prices remained flat for the month of October but annual reading saw 2.7% rise. Wine and beer are the only items to have recorded monthly increases both at 0.1% and annual rise of 5.0% and 1.4%, respectively. The price of spirit fell by 0.5% monthly and rose by 3.2% annually. Tobacco did rise by 1.2% monthly and jumped by 7.5%.
Clothing and footwear
Clothing and footwear had slight increases of 0.1% both monthly and annually. Prices of clothes remained stagnant for a month of October but rose by 0.2% on an annual basis. Footwear rose by 0.2% monthly but fell by 0.1% annually.
Housing and utilities
Monthly figures saw no change in prices but increased of 2.9% annually. Monthly prices for rentals for housing, owners’ equivalent rent and water and other services remained constant but had annual increases of 1.4%(owners’ equivalent rent), 1.3%(rentals for housing) and 6.1%( water and other services). Surprisingly, Electricity and other fuels descended by 0.1% monthly before hitting 5.9% annual increase.
Households contents and services
Monthly and annual prices rose by 0.1% and 1.7%, respectively. Both appliances, tableware and equipment and supplies and services had slight increases and only furnishings, floor covering & textiles recorded decreases(-0.1% monthly and 2.0% annually)
Health
The costs for healthcare services rose by 0.2% monthly and 4.1% annually driven by sharp rises of 0.4% monthly and 2.9% annual medical products. Medical services remained unchanged in October before chalking down annual increase of 5.0%
Transport
Transport services shed 0.2% both monthly and annually. The costs of acquiring vehicle ticked up by 1.0% in October and 4.6% on annual basis. Private transport operation gravitated by 0.2% and 6.5% annually with the main factor behind this turbulence being fuel prices with a decrease of 2.5% and a staggering decrease of 9.1% annually as a result of the local unit remaining valued under $/R15.50 and the brent crude price hovering around $40 per barrel. To nobody’s surprise, the public transport increased by 0.6% monthly and 2.9% annually following an echoing outcry by the taxi operation industry citing the government disregarding the severity of the impact of #Covid19SA in the industry thus, leaving them operating at a deficit with no adequate financial compensation tabled.
Communication
The prices remained steady for the month but shed 0.3% annually and the postal services and telecommunications services dwelled on the segmental average the same figures while telecommunication equipment fell by 0.4% monthly and 1.3% annually.
Recreation and Culture
Prices went up to 0.4% on monthly review and 1.8% annually buoyed by prices of both recreational equipments and books, newspapers and stationery. Recreational equipment ascended by 0.5% monthly and 0.8% annually while books, newspapers and stationery rose by 1.7% monthly to bring a massive annual jump of 9.4%. Packages holidays remained unshaken while recreational and cultural services remained steady monthly and 1.9% rise annually.
Education
The costs of education remained constant on a monthly scale but 5.6% surge was recorded annually. This doesn’t come as a surprise since the costs of education are conventionally reviewed before the end year in preparation for the new and upcoming academic year thus, a change once in year usually at the beginning of the year may be expected as different sectors are laboring to conjure up turn-around strategies to assuage the eye-watering impact of #Covid19SA.
Restaurants and hotels
Restaurants and hotels prices remained the constant, monthly but increased by 1.9% annually. Restaurant prices remained steady on a monthly review to bring a 2.0% annual increase while for those whose work demands lot of local travels, on average they had to fork out extra 0.5% on hotel prices for only the month of October which is 0.7% less during the same month last year. The restaurant industry has been on the news recently being accused for overlooking the SA citizens when it comes to recruiting staff, the industry is said to be going for cheap foreign labor on the basis that they aren’t affiliated to any trade union leaving them without any choice but rather to accept any wage figure an entity offers. If this matter is taken with a significant amount of seriousness like that of truck industry, then we should glue our eyes on the restaurant prices as high labor costs emanating from employing more local individuals might filter into the customers’ costs.
Miscellaneous goods and services
Other goods and services not accounted in all of the above segments increased by 0.1% monthly taking it to the 6.8% annually. Personal care prices increased by 0.7% monthly and 0.3% annually. Insurance and Financial services remained unchanged during the month in question while costing 7.3% and 7.4% more than the same time last year, respectively.
One can easily understand that the segments in which we experienced significant amounts of changes were operational during lockdowns. Education, communication, restaurants and hotels and recreation and culture had slight changes if not at all or only annual change because they were perniciously affected by lockdowns and their operations were constrained and confined in stillness example, tourism and travels industry remained remained subdued as the country slowly eases its lockdown restrictions. A number of categories in the inflation basket recorded an annual fall in prices in October, most notably fuel (-9,1%), package holidays (-3,7%) and hotels (-3,3%).
Food and beverages, health, clothing and footwear recorded price increases because they were open for businesses during lockdowns under the category classification of essential goods and services and other categories are accommodated through a gradual easing of lockdowns restrictions hence, some had slight changes to their price levels.
By Erasmus Boshomane
Email: eboshomane7@gmail.com
Cell: 084 847 6895
Earlier last week STATSSA announced that the Headline CPI went up to 3.7% hitting the highest record since 4.1% penned in March this year. The monthly increase in October was 0,3%, edging up from 0,2% recorded in both September and August.
The major contributors were categories such as food and non alcoholic beverages which increased by 1.3% on basis and annual surge of 5.4% all in October, this is the largest annual upsurge since September 2017.
Let’s now examine how all categories have been pricing their products and services both in October and previous 12 months
Pensioners
Prices for pensioners increased by 0.3% monthly which brought upon 3.4% annual increase in October.
Food and non alcoholic beverages
Prices of Food saw a monthly surge of 1.4% and annual rise of 5.4%. The major contributors to this surge came from Oil & fats (2.8%) and (10.0%) annual, Fruit (2.8%) and (13.5%) annual and vegetables(3.5%).
Prices for Non alcohol beverages went up by 1.2% monthly and 3.4% annually. The change was induced by increases of (1.5%, monthly & 6.3% annually) in hot beverages with main driver behind this upsurge prices being black tea. Black tea prices jumped by 3,9% in October compared with September, resulting in an annual rise of 10,4%. and (1.2%, monthly & 1.9%, annually) in cold beverages
Alcoholic beverages and tobacco
Bare in mind the change reflected in these prices disregards activities occurring in the informal market thus, the overcharging of alcohol & tobacco on the informal trade market that customers quarrelled about aren’t accounted for.
The prices remained flat for the month of October but annual reading saw 2.7% rise. Wine and beer are the only items to have recorded monthly increases both at 0.1% and annual rise of 5.0% and 1.4%, respectively. The price of spirit fell by 0.5% monthly and rose by 3.2% annually. Tobacco did rise by 1.2% monthly and jumped by 7.5%.
Clothing and footwear
Clothing and footwear had slight increases of 0.1% both monthly and annually. Prices of clothes remained stagnant for a month of October but rose by 0.2% on an annual basis. Footwear rose by 0.2% monthly but fell by 0.1% annually.
Housing and utilities
Monthly figures saw no change in prices but increased of 2.9% annually. Monthly prices for rentals for housing, owners’ equivalent rent and water and other services remained constant but had annual increases of 1.4%(owners’ equivalent rent), 1.3%(rentals for housing) and 6.1%( water and other services). Surprisingly, Electricity and other fuels descended by 0.1% monthly before hitting 5.9% annual increase.
Households contents and services
Monthly and annual prices rose by 0.1% and 1.7%, respectively. Both appliances, tableware and equipment and supplies and services had slight increases and only furnishings, floor covering & textiles recorded decreases(-0.1% monthly and 2.0% annually)
Health
The costs for healthcare services rose by 0.2% monthly and 4.1% annually driven by sharp rises of 0.4% monthly and 2.9% annual medical products. Medical services remained unchanged in October before chalking down annual increase of 5.0%
Transport
Transport services shed 0.2% both monthly and annually. The costs of acquiring vehicle ticked up by 1.0% in October and 4.6% on annual basis. Private transport operation gravitated by 0.2% and 6.5% annually with the main factor behind this turbulence being fuel prices with a decrease of 2.5% and a staggering decrease of 9.1% annually as a result of the local unit remaining valued under $/R15.50 and the brent crude price hovering around $40 per barrel. To nobody’s surprise, the public transport increased by 0.6% monthly and 2.9% annually following an echoing outcry by the taxi operation industry citing the government disregarding the severity of the impact of #Covid19SA in the industry thus, leaving them operating at a deficit with no adequate financial compensation tabled.
Communication
The prices remained steady for the month but shed 0.3% annually and the postal services and telecommunications services dwelled on the segmental average the same figures while telecommunication equipment fell by 0.4% monthly and 1.3% annually.
Recreation and Culture
Prices went up to 0.4% on monthly review and 1.8% annually buoyed by prices of both recreational equipments and books, newspapers and stationery. Recreational equipment ascended by 0.5% monthly and 0.8% annually while books, newspapers and stationery rose by 1.7% monthly to bring a massive annual jump of 9.4%. Packages holidays remained unshaken while recreational and cultural services remained steady monthly and 1.9% rise annually.
Education
The costs of education remained constant on a monthly scale but 5.6% surge was recorded annually. This doesn’t come as a surprise since the costs of education are conventionally reviewed before the end year in preparation for the new and upcoming academic year thus, a change once in year usually at the beginning of the year may be expected as different sectors are laboring to conjure up turn-around strategies to assuage the eye-watering impact of #Covid19SA.
Restaurants and hotels
Restaurants and hotels prices remained the constant, monthly but increased by 1.9% annually. Restaurant prices remained steady on a monthly review to bring a 2.0% annual increase while for those whose work demands lot of local travels, on average they had to fork out extra 0.5% on hotel prices for only the month of October which is 0.7% less during the same month last year. The restaurant industry has been on the news recently being accused for overlooking the SA citizens when it comes to recruiting staff, the industry is said to be going for cheap foreign labor on the basis that they aren’t affiliated to any trade union leaving them without any choice but rather to accept any wage figure an entity offers. If this matter is taken with a significant amount of seriousness like that of truck industry, then we should glue our eyes on the restaurant prices as high labor costs emanating from employing more local individuals might filter into the customers’ costs.
Miscellaneous goods and services
Other goods and services not accounted in all of the above segments increased by 0.1% monthly taking it to the 6.8% annually. Personal care prices increased by 0.7% monthly and 0.3% annually. Insurance and Financial services remained unchanged during the month in question while costing 7.3% and 7.4% more than the same time last year, respectively.
One can easily understand that the segments in which we experienced significant amounts of changes were operational during lockdowns. Education, communication, restaurants and hotels and recreation and culture had slight changes if not at all or only annual change because they were perniciously affected by lockdowns and their operations were constrained and confined in stillness example, tourism and travels industry remained remained subdued as the country slowly eases its lockdown restrictions. A number of categories in the inflation basket recorded an annual fall in prices in October, most notably fuel (-9,1%), package holidays (-3,7%) and hotels (-3,3%).
Food and beverages, health, clothing and footwear recorded price increases because they were open for businesses during lockdowns under the category classification of essential goods and services and other categories are accommodated through a gradual easing of lockdowns restrictions hence, some had slight changes to their price levels.
By Erasmus Boshomane
Email: eboshomane7@gmail.com
Cell: 084 847 6895
