Consumer Watch – October 2021

Inflationary pressures are mounting, with the FAO food index increasing by 1.9 points to 129.3 points
(implying inflation of 32.1% y-y) in September. CPI inflation increased by 10bps to 5.0% y-y in September,
while PPI inflation increased by 60bps to 7.8% y-y in September. As global oil prices continue to rise, SA
fuel prices are expected to increase by 98c/litre (R18.28/litre), and diesel will increase by 141c/litre
(R16.19/litre). In addition to the inflation pressure, the rand closed the month of October at R15.13, -1.3%
m-m weaker against the USD. The SACCI Business confidence index dropped by 0.9 points to 91.9 points
in September 2021.
The growth rate of total building plans passed continued to slow down, easing to +18.6% y-y in August
2021. Private Sector Credit Extension remains soft, increasing by 1.6% y-y in September. The nominal food
and beverage sales growth increased to 50.4% y-y in August, while retail sales growth declined further by
-1.3% y-y.