In today’s Codera Analytics post we use retail data to measure how consumers respond to price increases by measuring changes in basket compositions in relation to changes in prices. The chart shows a measure of the average cumulative substitution effects across South African consumers for condiments, oils and spice purchases. A higher substitution value means consumers are substituting to cheaper items when prices increase. We see that lower spending consumers have been much more likely to substitute to cheaper products when prices rise than high spending consumers. By shifting to cheaper products in this category, the average low spending consumer has saved about 13% since mid-2021, while the average high spending consumer has saved about 5% on their grocery bill over this period.
Rising inflation affects the consumption patterns of different consumer segments differently. EconData provides access to proprietary retail indicators at monthly frequency and detailed spatial disaggregation, enabling detailed and timely analysis of consumer behavioural changes. Contact us for a quote for a subscription.
