Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN) Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN)
Site map|Contact us  

 


Quarterly Food Price Monitor: November 2011
November 2011

Acknowledgements: FANRPAN acknowledges National Agricultural Marketing Council (NAMC) as the source of this document


Headline CPI increased by 6 % between October 2010 and October 2011. Food and non-alcoholic beverages inflation increased by 10.6 % between October 2010 and October 2011, the highest level since May 2009. Since October 2010, food and non-alcoholic beverages inflation has shown a strong increasing trend, from 1 % to 10.6 % in the past year. The annual increase in food and non-alcoholic beverages inflation was largely driven by the annual increases in oils and fats (22.6 %), sugar (14.9 %), meat (14.6 %) and vegetables (11.8 %). The prices of processed food products increased by 10.3 % from October 2010 to October 2011 and the price of unprocessed food products increased by 11.5 % over the same period.

When comparing selected countries, China showed the highest food inflation of 11.9 % in October 2011. Botswana experienced food price inflation of 8.3 % in October 2011. The international real food price index decresed by 4 % on a month-to-month basis in October 2011. On an annual basis, the food price index showed an increase of 8.68 %. The international food price index is currently at its lowest level since November 2010.

During October 2011, rural consumers paid R 8.95 more than urban consumers for the same food basket, a significantly lower price difference than usually reported. Food items showing the largest price difference in October 2011 were rice (2 kg) and margarine (500 g). The price of rice (2 kg) and margarine (500 g) were respectively R 4.59 and R 2.90 more expensive in the rural areas compared to the urban areas.

From October 2010 to October 2011 the cost of a basic food basket increased by about R44.53 (+12.1%) in nominal terms (compared to 6.7% from July 2010 to July 2011). This cost expressed as a share of the average monthly income of the poorest 30% of the population increased from 32.4% in October 2010 to 36.4% in October 2011, representing the highest share during this analysis period. The cost of the food basket expressed as a share of the average monthly income of the wealthiest 30% of the population increased slightly from 2.6% to 2.9%.

When comparing the costs associated with the typical portion sizes of very poor consumers for the five most widely consumed food items in South Africa, based on October 2011 versus October 2010 prices, the results in Figure 6 indicate inflation of about 15.1 % (from R3.05 to R3.51 for the selection of portions).


Top of page   -   Home   -   Contact us   -   Disclaimer
Food, Agriculture and Natural Resources Policy Analysis Network
FANRPAN Remote Access FANRPAN Webmail
Octoplus Information Solutions