Beef prices climb, affecting overall food costs

Food inflation accelerates further

The annual rate for food & non-alcoholic beverages (NAB) reached a 15-month high of 5,1% in June. Meat – particularly beef – continues to be the main driver of food inflation.

Beef prices spiked for a third successive month, with high annual and monthly increases recorded for stewing beef, mince and steak.

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Stewing beef rose by an annual 21,2%, the fastest pace on record since the current CPI series began in January 2017.

Other unprocessed food items also saw an uptick.

The annual rates for fruits & nuts and vegetables remained in double-digit territory for a second straight month. Products that witnessed sharp price increases in the 12 months to June include beetroot, lettuce and carrots. Peanuts, however, were slightly cheaper.

Inflation cooled across several food & NAB categories. Lower prices for white rice, hot cereals and cold cereals softened the annual rate for the cereal products category. Although maize meal continues to register high annual increases, the monthly change in June was 0,4%, the lowest since November 2024 (-0,1%).

Several dairy products are also cheaper than a year ago. Lower prices were recorded for fresh full-cream milk, fresh low-fat milk and eggs. These decreases helped pull the milk, other dairy products & eggs index into deflationary territory, recording an annual change of -0,5%.

Despite this decline, the category recorded a monthly rise of 0,3%, the highest since August 2024 when it was also 0,3%. Cheese products were notable contributors to this increase.

The charts below list the food and beverage products that registered notable price changes in June.

Other notable price changes

Stats SA collects rental data once a quarter. The annual change for actual rentals rose from 2,9% in the first quarter to 3,0% in the second quarter. The rate for imputed rentals also increased slightly, from 2,4% to 2,5% over the same period.

Fuel prices continued a downward trajectory, declining for a fourth consecutive month. Fuel is on average 11,2% cheaper than a year ago.