Food inflation eases for third month, offering relief despite rise in headline inflation

SOUTH Africa’s food inflation continued its downward trend in October, easing for the third consecutive month even as overall consumer inflation edged higher.

- YOGASHEN PILLAY

Statistics SA reported last week that food price inflation slowed to 3.9% in October, down from 4.4% in September, while headline inflation rose to 3.6% from 3.4%.

Economists and civil society organisations have welcomed the decline, saying it offers much-needed relief to households squeezed by high living costs.

Wandile Sihlobo, chief Economist at the Agricultural Business Chamber of South Africa, said the slowdown was driven largely by lower prices for fruit and nuts, vegetables, meat, sugar, confectionery and desserts.

“The ample supplies, combined with the base effects, are what contribute to the easing of price inflation in these products," he said.

"Moreover, while modestly up from the previous reading, the cereal products inflation also remains relatively low on the back of the ample grain harvest in the country.”

South Africa expects a strong 2024/25 summer grains and oilseeds crop, estimated at 20.08 million tons, up 30% year-on-year.

Sihlobo said this, together with robust fruit and vegetable production, should continue to soften food price pressures in the coming months.