After a year of sustained food price inflation, price increases may slow down slightly in 2022. That’s the mixture of good news and bad news coming from economists looking at price movements ahead.
World food prices rose sharply in 2021, spurred by key shortages, demand from China and disruption by the coronavirus pandemic. In South Africa, these global factors had more impact on prices than record maize and soya crops, which would otherwise have tempered price increases, explains agricultural economist Wandile Sihlobo.
Grain harvests will play a bigger role this year, but in a separate article Sihlobo says we won’t know for a month or more how badly excessive rains will reduce what was expected to be another bumper crop.
The consensus seems to be that food prices will continue to increase in 2022, but at a slower rate than in 2021.
