1. SA Economic Indicators:
for the month of August 2013

2. SA Economic Indicators
BASKET WEIGHTING
2008
Food 15.7%
Petrol 4.8%
Electricity 1.9%
Inflation
Updated September 2013
2008/2009 Recession
BASKET WEIGHTING
2012
Food 15.4%
Petrol 7.3%
Electricity 4.2%
Source: StatsSA

3. SA Economic Indicators
Inflation: CPI by Category
Updated September 2013
Fuel and electricity price hikes push food prices up
Electricity inflation drops due to Eskom tariff adjustment (increase cut from 25% to 16% )
Electricity inflation drops due to Eskom tariff increase of 8%, lower than previous years and a decrease in consumption (-1.8% YOY)
Source: StatsSA

4. SA Economic Indicators
Inflation: CPI by Food Type
Only 4 food types are experiencing inflation below the monthly headline. Note the high rate in vegetables, inflation has grown by 1% from January 2012 to July 2013
Updated September 2013
Source: StatsSA

5. SA Economic Indicators
Inflation: CPI by Province
Updated September 2013
3 of the 9 provinces are experiencing inflation above CPI levels
Source: StatsSA

6. SA Economic Indicators
Inflation
COMMENTARY
Headline CPI annual inflation rate in July 2013 was 6.3%, 0.8% higher than in June 2013, falling in line with the Reserve Bank estimates
On average, prices increased by 1.1% between June 2013 and July 2013
The food and non-alcoholic beverages index was unchanged between June 2013 and July 2013
The housing and utilities index increased by 2.1% between June 2013 and July 2013, as a result of a 9.4% increase in water tariffs, a 7.2% increase in electricity tariffs and a 6.1% increase in assessment rates.
PPI for final manufactured goods increased to 6.6%, the highest rate this year
Although the Reserve Bank has factored in that consumer inflation is moving above the 3-6% target, some speculate that it may be forced to increase the interest rate sooner rather than later should the Rand deteriorate further
The inflation rate averaged 9.53% from 1968 until 2013, reaching an all time high of 20.9% in January of 1986 and a record low of 0.2% in January of 2004

7. Kim Furber | Online Support Helga Altenroxel | Retail Analyst
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Other Sources
ABSA Agri Trends; BizCommunity; Bloomberg; Business Day; Business Report; Department of Agriculture, Forestry and Fisheries; Financial Mail; Finweek; Fin 24; The Mercury; Reuters; Stanlib, Sunday Times; Sunday Tribune; The Times ; thesouthafrican.com