SA Consumer Watch – November 2021

The consumer market remains challenging with no signs of normalisation as fuel prices increase. Petrol
price is expected to increase by 75c to R19.03/litre and diesel will increase by 73c to R16.92/litre in
December. Inflation pressures continue mounting with the FAO food index increasing by 3.9 points to 133.2
points (implying an inflation rate of 31.6% y-y) in October, PPI inflation increased by 30bps to 8.1% y-y,
while CPI inflation remained unchanged at 5.0%. In addition to the inflation pressure, the rand closed the
month of November at R15.89 (-5% m-m weaker) against the USD.

Against the backdrop of the inflationary pressures, consumers continued spending, retail sales growth
turned positive with growth of +2.1% y-y in September (-1.3% y-y in August). The nominal food and
beverage sales grew by +28.9% y-y in September (+51.3% y-y in August). Private Sector Credit Extension
remains soft, increasing by 1.6% y-y in October. The growth rate of total building plans passed eased to
+14.2% y-y in September 2021.