Food price inflation is a global concern, and South African consumers may not see food prices dropping for some time.
In its monthly Food Inflation Brief, the independent Bureau for Food and Agricultural Policy (BFAP) noted that while international prices may have peaked, South African prices are still pushing upwards.
BFAP noted that the food price index of the UN’s Food and Agriculture Organisation (FAO) had dropped to 154.2 points in June 2022. This is the third successive monthly decline since the index reached an all-time high of 159.7 points in March this year.
For South Africa, with food price inflation at 8.6% in June, the news is mixed.
“In June 2022, food inflation in South Africa remained lower than food inflation in Zambia, Kenya, Brazil, the USA and the EU. However, food inflation in South Africa showed the third highest month on month increase after China and the EU and may signal a ‘catching-up’ scenario,” BFAP said.
The bad news may yet be to come.