Article
South Africa’s food inflation accelerates
Published: 24/01/2018
Food inflation for December 2017 was in line with our expectation at 4.9% y/y, from 5.2% in November 2017. This is reflective of the current lower agricultural commodity prices, which in turn, have been pressured by a large harvest from the 2016/17 production season. We expect this trend to persist in the short term cushioned by the relatively large stock from the previous season, despite the fears of dryness in the western parts of the country.
Food inflation for December 2017 was in line with our expectation at 4.9% y/y, from 5.2% in November 2017. This is reflective of the current lower agricultural commodity prices, which in turn, have been pressured by a large harvest from the 2016/17 production season. We expect this trend to persist in the short term cushioned by the relatively large stock from the previous season, despite the fears of dryness in the western parts of the country.