The consumer market is showing strain as higher fuel prices, a weaker rand and increased CPI and PPI limit the purchasing power of the consumer wallet. Nominal retail sales grew by 2.8% y-y in February (11.89% y-y in January). Food and beverage sales grew by +24.3% y-y in February (+54.7% y-y in January). Vehicle sales growth rates remained stable, with a growth rate of 16.5% y-y in March (17.9% y-y in February). Inflationary pressure is increasing as CPI inflation increased by 20bps to 5.9%, whilst the PPI inflation increased by 140bps to 11.9% in March 2022. Despite the National Treasury decision to reduce the General Fuel Levy by R1.50, the petrol price still increased by 36c/litre in April. Diesel 0.05% increased by 153c/litre to R20.40/litre in April. The rand traded at an average of R15.02/USD for the month (+0.4% y-y).
