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So ever wondered if white bread prices increases faster than that of brown bread? Or if bread roll prices tend to increase at a faster rate than that of white or brown bread?
We take a look at the inflation rate of white and brown bread as well as the inflation rate of bread rolls over time in order to determine which one of these three products prices increases the fastest. |
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White bread inflation vs Brown bread inflationvs Bread roll inflation
The line graph below shows the year on year inflation rate of white bread, brown bread and bread rolls in South Africa from January 2018. And what is surprising is the magnitude with which bread roll prices are increasing at when compared to both white bread and brown bread inflation rates.
While the year on year inflation rates of white bread and brown bread is very very similar, the inflation rate of bread rolls is totally different. The bulk of the months in question saw white bread and brown bread inflation being negative (thus prices decreased compared to a year ago), bread rolls recorded relatively strong rates of inflation with its high during this period being 8.5% inflation in bread rolls prices compared to the previous year.
While the price increases in bread rolls might have been significantly higher than that of white and brown bread, we doubt that consumers would have noticed this, or feel it in their pocket, as the relative amount consumers spend on bread rolls compared to white and brown bread is very small.
According to Statistics South Africa, for every R100 the average household in South Africa spends, only 5c is spent on bread rolls, while 46c is spent on white bread and 58c spent on brown bread. So in total on bread and bread rolls, the average South African household spends R1.09 out of every R100 they spend on bread and bread rolls. This equates to about 1.1% of consumers total spending in South Africa going towards various types of bread and bread rolls.
Back to the inflation rate experienced by white and brown bread and bread rolls. Since January 2017, White bread prices have increased by 1.4%, Brown bread prices have increased by 1.6% and Bread Rolls prices increased by 11.4% since the start of January 2017. Perhaps retailers know that consumers spend a very small chunk of their money on bread rolls and that they buy them infrequently and they are therefore less likely to notice steep price increases in bread rolls compared to white or brown bread which is purchased more frequently by South African households.
While the price increases in bread rolls might have been significantly higher than that of white and brown bread, we doubt that consumers would have noticed this, or feel it in their pocket, as the relative amount consumers spend on bread rolls compared to white and brown bread is very small.
According to Statistics South Africa, for every R100 the average household in South Africa spends, only 5c is spent on bread rolls, while 46c is spent on white bread and 58c spent on brown bread. So in total on bread and bread rolls, the average South African household spends R1.09 out of every R100 they spend on bread and bread rolls. This equates to about 1.1% of consumers total spending in South Africa going towards various types of bread and bread rolls.
Back to the inflation rate experienced by white and brown bread and bread rolls. Since January 2017, White bread prices have increased by 1.4%, Brown bread prices have increased by 1.6% and Bread Rolls prices increased by 11.4% since the start of January 2017. Perhaps retailers know that consumers spend a very small chunk of their money on bread rolls and that they buy them infrequently and they are therefore less likely to notice steep price increases in bread rolls compared to white or brown bread which is purchased more frequently by South African households.