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Food inflation will hurt consumers
Food price inflation is one of the main reasons that contributed to the Reserve Bank Governor, Gill Marcus' decision not to hike interest rates. Food inflation is currently 11.6%, considerably more than the overall inflation rate of 6.1%.
Quoting economist Jeffrey Schultz of Absa Capital, City Press says that food price inflation is likely to peak at about 15% year-on-year. Food prices are significant when measuring inflation, with a weighting of 14.27% on the Consumer Price Index.
According to the City Press report, he warns that consumers will have to spend carefully this year as food inflation cannot be avoided, especially if the rand continues to weaken and oil prices continue to rise.
According to figures released by the National Agricultural Marketing Council's Food Price Monitor Report, maize prices had risen 100% by September last year when the last report was released.
For more:
- City Press: Food price inflation puts the brakes on rate hikes
- National Agricultural Marketing Council: Food Price Monitor Report
