Shoppers Rejoice: Grocery Inflation Finally Eases!

Shoppers Rejoice: Grocery Inflation Finally Eases!
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Published on: Jul 29, 2024 9:00:00 AM

The EasyAssetManagement team shares that South African shoppers finally have some good news on the grocery front! Inflation is slowing down, with the year-over-year rate dropping to 2.2% in June from 3.1% in May. Retailers like Spar, Woolworths, and Shoprite are stepping up their game with strategic price adjustments and promotions



South African shoppers finally have some good news on the grocery front!

Inflation is slowing down, with the year-over-year rate dropping to 2.2% in June from 3.1% in May. This welcome decline is due to a double dose of relief: more deals and strategic price adjustments.

Stores are stepping up their promotional game (discounts!) to attract customers. The number of discounted items offered in June actually increased compared to May. Additionally, some categories, especially fruits and vegetables, saw price decreases in June. This helped balance out any price hikes in other areas and kept the overall inflation rate in check. The biggest win for budget-conscious shoppers? Fruits and vegetables swung from a hefty 7.2% year-over-year increase in May to a slight decrease in June! This trend is evident in stores like Spar and Usave, where basket prices even dipped slightly month-over-month from May to June.



But wait, there's more to the story! The battle for your grocery rand is heating up among retailers. Here's a breakdown of how different stores are faring:
  1. Spar: The Low-Inflation King - Spar currently holds the crown for the lowest inflation rate, practically zero! This is thanks to their aggressive promotions – they significantly boosted the number of discounted items compared to May. This focus on deals even led to a slight decrease in the overall price of their basket of goods.

  2. Woolworths: Feeling the Heat - On the other end of the spectrum, Woolworths remains the most expensive grocer. Their lower level of promotions and some price hikes on groceries and cleaning products are keeping their inflation rate high.

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  3. Shoprite: Striking a Balance - Shoprite has managed to keep its average inflation rate lower than most competitors over the past year. They've also ramped up promotions, which might explain their recent sales growth.

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  4. WHL: High Prices, High Sales? - WHL currently has the highest inflation rate overall. However, they seem to be able to pass on these costs to customers. Their recent sales growth and higher profit margins suggest shoppers are still buying despite the higher prices. WHL expects inflation to slow down in the coming months, which could improve their outlook.


The fight for the most affordable basket is on as well! Usave has emerged as the clear winner for June, holding their basket prices steady compared to May. This makes them the most budget-friendly option for shoppers right now.

While most other retailers raised their basket prices, Spar is the only exception among mid-range to higher-end stores. Their basket prices haven't budged significantly, keeping them in the game for price-conscious consumers.

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Checkers and PIKnPay haven't seen major changes in their basket pricing either. Shoprite and WHL Food, however, are experiencing rising basket prices.



In conclusion, grocery inflation is finally showing signs of cooling down, with some retailers offering more deals and strategic price adjustments. This is good news for South African shoppers! While basket prices vary across stores, there are options for everyone depending on their budget.

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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an employee of EasyEquities an authorised FSP (FSP no 22588) as general market commentary and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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