South Africa’s food inflation rate in June was the lowest since the Covid lockdowns of 2020, according to a statement by StatsSA.
The rate for food and non-alcoholic beverages (NAB) dropped to 4.6% in June, from 4.7% in April and May.
“Food & NAB inflation has declined from its recent peak of 14,0% in March 2023. June’s reading is the lowest since September 2020 – 45 months ago at the peak of the COVID-19 lockdowns – when the rate was 3,8%,” StatsSA said.
With fuel prices also dropping, the downward trend may continue.
Food inflation has remained below general inflation, as measured by the consumer price index.
The two are compared monthly in the Food Inflation Brief published by the Bureau for Food and Agricultural Policy (BFAP). While food inflation was 4.6% in June, CPI came in at 5.1%. Food inflation has been dropping since it peaked in March 2023, and has been below CPI since March this year.
BFAP noted that poultry prices have been dropping globally, while in South Africa the price of individually quick frozen (IQF) chicken portions has been on a downward trend since late 2023 as production recovers from the disruptions due to bird flu outbreaks.
“IQF prices dropped by 14.0% YoY, from R33.68/kg in June 2023 to R28.97/kg in June 2024. This reflects stronger production, as well as weak consumer spending power and a marginally stronger Rand, which reduces the cost of imported products,” it said.
