HOT BEVERAGES PRICE AT WAR DUE TO UPTICK IN INFLATION

Written by: Kwena Seema

According to the latest data from Stats SA, annual consumer price inflation stood at 5.2% in May, unchanged from April.

This comes after five consecutive months of decline, food & NAB inflation remained steady at 4, 7% in May, unchanged from April. Bread & cereals continued to trend downward, slowing further to 3, 9%. This is the lowest annual reading for bread & cereals since February 2022 when the rate was 3, 7%.

Meanwhile, hot drinks like coffee saw inflation close to 18%, with the cost to brew a cup almost doubling in price over the last few years.

With winter chills currently setting in, the price for cold & flu medication witnessed an annual rise of 11, 1%. Other health-related products that recorded relatively large increases include eye drops (up 15,9%), laxatives (up 11,3%), cough syrup (up 8,1%) and vitamins (up 7,1%). Despite these increases, overall inflation for health products cooled from 7,7% in April to 5,8% in May.

Transport quickened to 6, 3% from 5,7% in April. This is the highest rate for the category since October 2023 (7,4%). Fuel was the major culprit, with petrol and diesel prices increasing on average by 9,3% over the last 12 months (and by 0,6% since April 2024).

The index for restaurants & hotels rose by an annual 6,5%. Hotel prices were up by 8,0% over the same period, with hotels in Gauteng, Free State and Limpopo registering increases higher than 10%.

The miscellaneous goods & services category recorded an annual rate of 7,1%, slightly softer than 7,2% in April. Personal care products recorded a fifth consecutive month of disinflation, slowing to 7,0% in May from a recent high of 10,3% in December 2023. Personal care products with the highest inflation rates in May were baby powder (up 18,4%), shampoo (up 16,6%), toothbrushes (up 16,5%) and toothpaste (up 16,1%).

Digging a little deeper into the data, the average price for instant coffee (250 g) was 82% higher in May 2024 than in January 2017 (when Stats SA started publishing average prices). Many coffee drinkers enjoy sugar and milk in their favourite brew, and these have also risen in price over the same period, although not as sharply as coffee.

The index for restaurants & hotels rose by an annual 6,5%. Hotel prices were up by 8,0% over the same period, with hotels in Gauteng, Free State and Limpopo registering increases higher than 10%.

The miscellaneous goods & services category recorded an annual rate of 7,1%, slightly softer than 7,2% in April. Personal care products recorded a fifth consecutive month of disinflation, slowing to 7,0% in May from a recent high of 10,3% in December 2023. Personal care products with the highest inflation rates in May were baby powder (up 18,4%), shampoo (up 16,6%), toothbrushes (up 16,5%) and toothpaste (up 16,1%).

Food and beverage products that recorded the most significant annual and monthly price increases in May.