Subscribe & Follow
Jobs
- Customer Service (UK Market) Work from Home Nationwide
- Buildware | Hardware Group Sales Manager Garden Route
- New Business Developer - Green Technology Food Packaging Johannesburg
- Customer Service (UK Market) - Work from Home Nationwide
- Logistics and Inventory Manager Johannesburg
- Marketing Manager - UK Market (Work from Home) Nationwide
- Account Executive Cape Town
Slowdown in food inflation set to ease burden
![Slowdown in food inflation set to ease burden](https://biz-file.com/c/1802/428004-700x364.jpg?2)
Meat, fruit and vegetables remain expensive items on grocery slips, but the pinch consumers have been experiencing for a while now has been eased slightly by lower bread and cereal prices.
The food component of the producer price index (PPI) slowed to 1.0% while the consumer price index (CPI) showed that food inflation had moved lower in December at 4.9%. In February 2017, food inflation was as high as 10.0%. Drought was blamed for the high food inflation, which resulted in substantial hikes of food over the past two years.
Over the past three years, the price of bread has risen nearly twice as fast as the inflation rate. But bread and cereal prices, which make up nearly a third of the national food inflation basket, have dropped 5%.
Consumers were paying R8.17 for white bread in June 2017, from R7.95 in December 2016. By December 2017, the price of bread dropped to R7.59. "Those products [bread and cereal] are way less now than last year," Wandile Sihlobo, head of agribusiness research at Agbiz, said.
Although meat prices have remained high, the pace at which they have risen has slowed. In December 2017, meat price increases were elevated at 14% year on year. With the culling of herds on the rise, meat inflation should fall further in coming months, said Momentum economist Sanisha Packirisamy.
Fruit and vegetable prices, however, were likely to rise because of the drought affecting the Western Cape.
Source: Business Day
Source: I-Net Bridge
![](https://biz-file.com/b/1206/36520.gif?3)
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za![](/res/img/s.gif)