The drought is set to have dire consequences on South Africa's economy in 2016.
Economist Mike Schussler on Monday said that prices are set to rise a lot more than expected, particularly for bread, maize, dairy and chicken.
Schussler predicts that this year may see two or three interest rate hikes, adding that inflation may likely increase over 7% if things don't improve.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:
The commodity price sector in South Africa are under pressure because of the drought which will impact the consumer. We need to be more prudent than ever before.— Mike Schussler, Chief Economist
There's a whole host of food prices that will come under pressure, even medicine prices will have to rise as most of the ingredients are imported.— Mike Schussler, Chief Economist
We should have had fuel price decreases, like many other countries in the world have had. But we haven't had them in the last month or so.— Mike Schussler, Chief Economist