Food price inflation has peaked says Agbiz economist
Consumer price inflation (CPI) slowed to 4.9% in June from May's 30-month high of 5.2%.
As the prices on supermarket shelves seem to keep rising, what does this mean for food price inflation?
Bruce Whitfield interviews Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa (Agbiz).
Sihlobo has reassuring words even in the face of rising inflation in the cost of farming.
I think we're at the peak of this and in the coming months we should see food price inflation really softening.Wandile Sihlobo, Chief Economist - Agricultural Business Chamber of SA
The key thing at the heart of this are the oils and fats, meat, milk and cheese...Wandile Sihlobo, Chief Economist - Agricultural Business Chamber of SA
The driving factor is not so much what's happening in South Africa but rather globally, particularly for the oils and fats. Lowered production in some parts of Asia and the rise in demand has been at the heart of that.Wandile Sihlobo, Chief Economist - Agricultural Business Chamber of SA
But going forward, we are starting to see global production recover...Wandile Sihlobo, Chief Economist - Agricultural Business Chamber of SA
Sihlobo acknowledges that rising production costs (pesticides, fertiliser...) are going to be a headache for South Africa's farmers, particularly in the next two months going into the planting season.
However, amid an abundant harvest, high agricultural commodity prices have been an ironic windfall for South African farmers he says.
Read Sihlobo's full analysis of the outlook for famers here.
Should South Africans be worried about food security in terms of the recent unrest and looting?
While the retail and agricultural sectors are facing huge losses in KwaZulu-Natal, the supply of food is slowly normalising Sihlobo says.
For more detail, listen to the audio clip below:
Source : https://www.123rf.com/photo_33560262_corn-grain-in-a-hand-after-good-harvest-of-successful-farmer-in-a-background-agricultural-silo.html?term=grain%2Bharvest&vti=laz3is0dg018fu2wof-1-10