Agri industry welcomes food inflation cooling to 5.2% as outlook brightens

THE Agricultural Business Chamber of South Africa (Agbiz) has welcomed the easing of food inflation as South Africa's consumer price index for food has declined to 5.2% in August 2025 from 5.5% the previous month, according to recent data released by Statistics South Africa (Stats SA).

- YOGASHEN PILLAY

Wandile Sihlobo, chief economist at Agbiz, said the easing marks the first slowdown after six consecutive months of rising food prices.

He noted that cereals, fruit, nuts, and vegetables were the main drivers of the moderation, supported by South Africa’s abundant harvests.

However, Sihlobo said a key product that many are watching is meat, which has remained elevated, although slaughtering has resumed in major feedlots across the country.

“Initially, panic buying, not necessarily a shortage of product, was the main driver of meat prices. The fact that while the supply has improved somewhat, the prices remain elevated illustrates that consumer demand may be slightly more buoyant and able to contend with the current higher prices, to an extent” he said.

Sihlobo said that there may also be a slight delay in price adjustments at the retail level.