Tuesday, 23 July 2024
Trending
AfricaFood

Food inflation in South Africa is rising once more

  • In October, the food and NAB inflation in South Africa kept rising.
  • The inflation rate was 8.7% year over year and 1.5% month over month.
  • Increased production costs due to uncontrollable factors are causing more volatility in the volumes offered to the market.

In October, the Bureau for Food and Agricultural Policy (BFAP) reported that food and non-alcoholic beverage (NAB) inflation in South Africa kept rising. As opposed to the CPI headline inflation figures of 5.9% and 0.9%, the inflation rate was 8.7% year over year and 1.5% month over month.

For the CPI headline inflation figure, food inflation added 1.6 percentage points year over year and 0.3 percentage points month over month.

Food inflation

Bread and cereals, veggies, dairy products, meat, NAB, and sugar-rich foods were the main causes of inflation for food and NAB. Prices for food commodities around the world decreased by 10.9% from September to October and by just 0.5% from that month in 2022.

In South Africa, last month’s y-on-y inflation was highest for vegetables (17.6%), then sugar-rich foods (17.6%), dairy and eggs (12.4%), bread and cereals (8.8%), fruit (8.5%), NAB (8.4%), fish (7.7%), and meat (3.4%).

Potatoes, sweet potatoes, broccoli, cauliflower, papaya, and bananas were common food items purchased that had y-on-y inflation equal to or higher than 30%. Items that experienced year-over-year inflation ranging from 20% to slightly less than 30% included rice, instant noodles, frozen potato chips, polony, onions, pumpkin, sugar, tea, whiteners, and soup powder.

October saw a 5.1% decline in the rand’s value relative to the US dollar and an 11.2% year-over-year and 6.5% month-over-month increase in the South African CPI rate for fuel. Thrifty Healthy Food Basket (THFB) costs increased by 1.9% month over month and 8.4% year over year at the BFAP.

Increased production costs due to uncontrollable factors are causing more volatility in the volumes offered to the market. A depreciating rand, which impacts the price of imported inputs like fuel and fertilizer, and ongoing load-shedding pressure continue to be significant contributors to increased input costs, impacting farmers’ business and production choices and raising costs along the value chain.

Related posts
AfricaNatural Disaster

Death Toll in Southern Ethiopia Mudslides Climbs to 157

At least 157 people have died in recent mudslides in southern Ethiopia. Many victims were caught…
Read more
AfricaBusiness

World Bank Report Highlights Key Reforms for African Businesses

Sub-Saharan Africa demonstrates resilience through policy reforms amid global…
Read more
AfricaEducation

Zimbabwe’s Health Sector Faces Crisis as Students Flee for Better Opportunities

Zimbabwean medical and nursing students are increasingly studying abroad due to systemic issues and…
Read more
Newsletter
Become a Trendsetter

To get your breaking, trending, latest news immediately without diluting its truthfulness join with worldmagzine immediately.

Leave a Reply

Your email address will not be published. Required fields are marked *

Stock Market

Shareholders of LON: LSEG have received a CAGR of 18%

Worth reading...