Engineering News reports that according to the Bureau for Food and Agricultural Policy (BFAP), South African food and non-alcoholic beverage inflation hit 9.7%, in year-on-year (y-o-y) terms, in July.

This was the highest level since the severe drought in the country during 2016 and 2017. However, the South African figure is still noticeably behind the y-o-y food inflation rates for Zambia (11.3%) and Kenya (15.3%). In month-on-month (m-o-m) terms, South African food and non-alcoholic beverage inflation in July was up 1.1%. The sector contributed 1.7 percentage points to the consumer price index y-o-y headline inflation figure of 7.8%. The price of the BFAP’s ‘Thrifty Healthy Food Basket’ (THFB) came to R3,261 a month. This was 11%, or R329, up in y-o-y terms, and 2.4%, or R76, more in m-o-m terms. The THFB is composed of a nutritionally-balanced selection of 26 food items and is designed to feed a family of two adults, one older and one younger child, for a month. “Our view is that food inflation is close to peaking – if the July figures were not at the peak already,” the BFAP observed. There were, however, issues of concern, such as whether or not the current ban of cattle transport within SA – to try and prevent the spread of food-and-mouth disease – would be extended beyond its initial three-week period. Should the ban be extended, the supply of beef would be constrained, driving up prices.

• Read the full original of the report in the above regard at Engineering News

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