Lower food inflation offers little relief as fuel and transport costs bite

SOUTH Africa's food inflation eased to its lowest level in 14 months in April, providing a rare positive development for consumers under pressure from rising living costs, but economists and civil society groups warn that escalating fuel and transport prices could soon reverse the gains.

- YOGASHEN PILLAY

Statistics South Africa data last week showed food inflation slowed from 3.4% in March to 2.8% in April, even as headline consumer inflation accelerated sharply to 4%.

Wandile Sihlobo, chief economist at Agricultural Business Chamber of South Africa, said the moderation in food inflation reflected improving supply conditions across major agricultural products.

“At the core of moderating consumer food price inflation are lower grain, fruit, and vegetable prices on the back of ample domestic and global supplies, and moderating vegetable oil prices, which underpin the softening of price inflation. We believe meat presents minimal risks to inflation,” Sihlobo said.