Inflation uptick in January as new CPI basket takes effect

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Food inflation slightly softer in January

The CPI for food & non-alcoholic beverages (NAB) increased by 2,3% in the 12 months to January. This is a lower increase than the 2,5% registered in December 2024. Inflation slowed for meat; fruits & nuts; sugar, confectionery & desserts; fish & other seafood; and milk, other dairy products & eggs.

Cereal products; hot beverages; cold beverages; oils & fats; and vegetables registered higher rates.

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Meat prices were on average 0,5% lower in January 2025 compared with January 2024. This is the third month that the CPI for meat has been in deflation. This is mainly the result of a downward trend in the price index during 2024. However, in January prices increased by 0,8% month-on-month, following a 0,5% rise in December.

Prices for cereal products increased by an annual 3,8% from 3,7% in December. Maize meal prices rose by 4,8% between December and January, taking the annual rate to 10,1%.

The annual increase for samp was 15,4%. In contrast, prices dropped for both white (-0,7%) and brown (-0,5%) bread. The annual increase for white bread was 1,9% and for brown bread 1,0%.

Photo by Gemma C on Unsplash

Inflation for hot beverages remains sticky at high levels. The annual increase for this category was 13,7% in January, slightly up from 13,5% in December. Overall prices rose by 1,0% between December and January. Instant coffee and rooibos tea both increased by 1,4% month-on-month.

The annual inflation rate for instant coffee entered double-digit territory in March 2022, falling briefly below 10% in August 2023 before peaking at 22,3% in August 2024. The rate in January was 17,2%, the highest of all food products.

Other food & NAB items that witnessed notable annual increases in January include samp, fresh cabbages, dried beans, black tea, whiteners, fizzy drinks and chocolate.

*Information according to Stats SA at time of publishing