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In October 2020, year-on-year inflation for food and non-alcoholic beverages increased by 5.4%, with month-on-month inflation amounting to 1.4%. Both of these figures are steep increases compared to the relatively constant growth in prices in 2020Q3. This is likely a combined result of increased cost pressures in food value chains, combined with a slight rebound in consumer confidence which could signal an uptick in demand.
In 2020Q3 the FNB/BER consumer confidence rose by 10 index points after plunging 24 index points in 2020Q2. This suggest that consumer confidence are still depressed and it has not recovered to pre-Covid lockdown levels. This could dampen demand for higher value products over the coming months.