Wolmaransstad Link: Bad news about coffee prices as consumers feel the punch

Leeudoringstad - The latest inflation data shows that coffee prices in South Africa remain on the rise, and experts warn that more pain is coming due to supply constraints, input costs, currency fluctuations, and global trade wars.

The latest inflation data for South Africa shows that coffee lovers continue to suffer, even as headline inflation has dropped to a five-year low.

Stats SA’s latest basket analysis shows that CPI declined more than expected from 3.2% in February 2025 to 2.7% in March 2025.

The last time inflation was lower than this was in June 2020, when it reached 2.2%, and Stats SA said the decline was mainly due to lower fuel prices and softer tuition inflation.

The annual rate for food & non-alcoholic beverages (NAB) edged lower to 2.7% in March from 2.8% in February.

Vegetables, fruits and nuts, cereal products, meat, and fish registered higher annual inflation rates. In contrast, oils and fats, hot beverages, milk, other dairy products, eggs, cold drinks, sugar, confectionery, and desserts had lower rates.

Coffee and tea drinkers also continue to feel the pain. Although the annual rate for the hot beverages category declined slightly in March, it remains high at 14.4%.

The category has seen double-digit inflation in all but five of the 32 months since August 2022. Coffee prices continued to lead the beverages category, with inflation hitting 18.8%.

This follows the 19% increase reported in February, showing that the price increases remain sticky despite the overall drop in inflation.

A new report from the Food and Agriculture Organisation (FAO) shows that world coffee prices reached a multi-year high in 2024, increasing 38.8% from the previous year’s average.

Experts have warned that this will likely continue into 2025, with some roasteries and coffee suppliers already hiking prices of up to 30%.

MARKETS:

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17.63/-0.34%
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19.31/-0.09%
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23.07/-0.10
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954.58/-0.02%
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