Food price inflation in February dropped to 6.1%, while CPI inflation rose to 5.6%.
In its monthly Food Inflation Brief, the independent Bureau for Food and Agricultural Policy (BFAP) publishes a graph that illustrates the disparity between the two rates. Food inflation started rising in 2022 following the impact on global prices of Russia’s invasion of Ukraine.
Food inflation peaked at 14% in March 2023, when it was double to CPI rate of 7%. It has eased considerably since then, edging ever closer to the CPI inflation rate.
However, the BFAP warns of renewed price pressure on maize, a major component of animal feed. Maize prices are rising as crops deteriorate because of hot and dry conditions in central South Africa due to the El Niño weather phenomenon. Oilseed and soya prices are also rising.
The BFAP says that, while global meat prices rose in February, most South African meat prices declined, partly due to a weaker exchange rate.
“Poultry prices have also contracted since December 2023, reflecting an improvement in local supply of chickens in the post-AI (avian influenza) outbreak period. Imports of fertile eggs that enabled consistent day-old chick supply were critical in maintaining production levels.”
Using individually quick frozen (IQF) chicken pieces as a reference, the BFAP said poultry prices were lower by 2.1% in February 2024 compared to the previous month.
