What onions tell us about consumer inflation

StatsSA reported consumer inflation, year on year at 7.1 percent. But for most South African households, inflation is far higher, with those earning less than R33 619 a year experiencing inflation above 10 percent. 

Inflation is not the same for everybody. 

For most South Africans, it’s probably higher than the 7.1 percent year on year reported today from  March 2022 to March 2023 by StatSA. This 7.1 percent is slightly up from the last update of 7 percent. 

A big reason for the disparity is that food inflation is surging, impacting households differently depending on income. 

Onions are 45 percent more expensive than last year, maize meal, samp, and carrots are 30 percent more expensive. 

If you’re in the lowest decile, StatsSA estimates you’ll spend 50 percent of your budget on food. If you’re in the highest, you’ll only spend 10 percent. 

StatSA previously estimated that around half the country lives below the upper-bound poverty line, currently set at R 17 004 per year. This places most South Africans in the first decile and their inflation rate at 10,7 percent.  

However, StatSA bases its overall inflation number on total expenditure, which doesn’t reflect the dynamic that most South Africans fall into the lower decile categories.