6 days ago
- Business
- The South African
Bad news for meat prices ahead of pay day weekend
South African households are feeling the pinch at the dinner table, with the price of meat – especially beef- emerging as a major driver of consumer inflation in June.
According to the latest data from Stats SA, the annual food inflation rate climbed to 5.1%, marking a 15-month high, and meat was the leading contributor.
This spike helped push the overall Consumer Price Index (CPI) up from 2.8% in May to 3.0% in June.
The standout statistic: stewing beef prices skyrocketed by 21.2% year-on-year – the highest increase recorded since Stats SA's current CPI series began in 2017.
Other beef cuts, such as mince and steak, also saw sharp monthly and annual increases, capping off a three-month streak of rising meat prices.
The steep increases are being driven by several factors: Supply constraints , with the country's cattle herds still recovering from previous drought conditions.
, with the country's cattle herds still recovering from previous drought conditions. Higher feed prices , driven by global grain market fluctuations.
, driven by global grain market fluctuations. Increased input costs across the meat production chain.
Meat is a staple in most South African diets, particularly among lower- and middle-income households.
With meat making up a large share of household food budgets, the recent price hikes are disproportionately impacting vulnerable consumers.
Economists warn that if the trend continues, families may be forced to: Shift to cheaper protein sources like chicken, eggs, or plant-based alternatives
Buy smaller portions or lower-grade cuts
Reduce meat consumption altogether
'Consumers are likely to start adjusting their buying habits. Meat, especially beef, is becoming a luxury,' said consumer analyst Thabo Mokoena.
While other food categories like dairy and cereals have seen minor relief, meat inflation shows no sign of slowing.
The trajectory of meat prices will be a key factor to watch in the next CPI report due in August.
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