Food price inflation is at 11.3%. What’s driving this (and how high can it go)?

The inflation rate declined to 6.2% in April from 6.3% in March.

However, food prices skyrocketed by 11.3%.

The Money Show’s Bruce Whitfield interviewed Professor Johann Willemse, Agriculture Economist at the University of the Free State.

Willemse discussed the following:

  • Is this the result of a perfect storm of a weak rand and a severe drought?

  • What is lying ahead for food prices?

  • Which types of food are driving this?

Scroll down for quotes from the audio below.

We’re heading into winter. The supply of fruits and vegetables will not increase until early 2017.

Professor Johann Willemse

We’re looking at food inflation at 15% by the end of the year.

Professor Johann Willemse

Wheat makes up about 20% of a bread’s cost. There are substantial extra costs.

Professor Johann Willemse

We’re looking forward to a better season.

Professor Johann Willemse

2017 will, hopefully, be a better year.

Professor Johann Willemse

About 1 out of 4 South Africans can’t afford sufficient food. It’s not a good place to be as a country. It adds to social instability.

Professor Johann Willemse

Why can’t government subsidise some basic foods for poor people? Why don’t they look at food stamps like some other countries?

Professor Johann Willemse

The people at the top don’t realise the pressure that poorer people are under.

Professor Johann Willemse

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This article first appeared on 702 : Food price inflation is at 11.3%. What’s driving this (and how high can it go)?


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