The outlook on food inflation will not change significantly in the near to medium term, because of the buffer of large stocks from the previous agricultural season.
This was according to Wandile Sihlobo, economist at the Agricultural Business Chamber (Agbiz).
“Overall, a clearer picture of SA’s 2017/18 grain and oilseed production will unravel later this month when the National Crop Estimate Committee releases its preliminary planting estimates data,” he said in the latest Agbiz newsletter.
Fin24 reported earlier that in November inflation eased to 4.6%, according to Statistics SA. This is 0.2 of a percentage point lower than the corresponding annual rate of 4.8% in October.
Food and non-alcoholic beverages contributed 0.1 of a percentage point in November. The index increased by 0.4% month on month.