After an eight-month downtrend, South Africas consumer food price inflation slightly edged up 4.1% in August in spite of headline consumer inflation slowing to 4.4% and giving assurances to the SA Reserve Bank to begin its rates-cutting cycle.
Statistics South Africa said yesterday that annual bread and cereals inflation quickened for a third successive month while the meat index increased on an annual basis.
Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), said yesterday that the products underpinning this mild increase were bread and cereal, meat, vegetables, fish, and milk, eggs and cheese.
Sihlobo said that while a slight uptick was expected, they remained sceptical that price increases would be significant in the coming months.
The significant upside risk we have highlighted for some time is the grain-related products in the food basket because of the poor summer crop harvest due to the recent drought, Sihlobo said.
