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South Africa (SA) has disparities and differentials in economic indicators such as the CPI, Gross Domestic Product and employment, amongst the provinces which are caused by among other things geographic set-up, urbanisation, inflation rates, and expenditure patterns. We use the monthly data to do an inter-provincial comparison of food prices by deriving annual purchasing power parities (PPPs) for each of the provinces.There is a potential of measuring the supply of and demand for proucts at provincial level, and that could measure the inter-provincial trade in SA. The methodology can also provide the opportunity for creating for proxy of a Cost Of Living Index for provinces, since the methodology used is the comparison of similar products which are selected with specific characteristics.The research targets economist, poverty and equalities analysts and students.

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Eugene Modisa Kgantsi, MSc: Studied Statistics at Witwatersrand (Wits) University. Principal Economist at Statistics South Africa:National Accounts Research, Pretoria, South Africa.

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