Food Inflation Rising concern
Food prices – and here we quote freely from the article which caused all the trouble with Checkers, but which is otherwise pretty good – are on the up and it’s hurting consumers. Food prices increased 12.5% over the past year, or almost double the CPI at 6.3%. Inevitably, it was the cost of the basics which increased the most, with vegetables up 22.8%, oils and fats 21.5%, breads and cereals 21.5%, fruits 13%, dairy 6.5% and meat 6.3%. While Standard Bank expects food inflation to peak at 12% this year, averaging 10.2%, the gloomier economists are saying it will be closer to 16%, driven thither by the drought, the weak rand, and a declining economy. The good news, if such there is, is that the Reserve Bank is unlikely to add to the woes of SA’s most vulnerable by upping the repo rate.
Comment: In this climate, accusations of scalping by the major retailers are particularly worrying.