After five months of steady decline, South Africa’ food price inflation moved slightly upwards in September 2023.
The monthly Food Inflation Brief produced by the independent Bureau for Food and Agricultural Policy (BFAP) said the food inflation rate in September was 0.1 of a percentage point higher than in August.
Its monthly graph on the gap between South Africa’s food inflation and headline inflation showed them closer together than at any time in the past year. Food inflation peaked at nearly 14% in April, and has dropped to 8.1%. Headline inflation, as measured by the consumer price index (CPI), was 5.4% in September.
“From January 2022 to April 2023 the gap between CPI headline inflation and inflation on food and NAB (non-alcoholic beverages) increased from 0.0 to 7.1 percentage points due to the sharp rise in agricultural commodity prices, but as prices started declining again, the gaps reduced significantly and food price inflation is trending closer to CPI headline inflation,” the BFAP said.
In the South African meat market, poultry and pork prices moved contrary to international trends, given the weak exchange rate. Poultry prices were slightly higher (1.4%) for the second consecutive month and up by 16.8% year-on-year, reflecting persistently high input costs and the weaker exchange rate.
“Poultry prices could increase further in coming months, as the full effect of the current widespread Avian Influenza (AI) outbreak starts to manifest in markets,” the report said.
