Most South Africans are crumbling under the cost of living. Image: Anne Maczkowiack / Flickr
Food prices: Good news for South Africa as prices expected drop
According to experts, South Africans can afford to breath a sigh of relief in 2023 as food prices are expected to drop.
Most South Africans are crumbling under the cost of living. Image: Anne Maczkowiack / Flickr
South Africans can breathe a sigh of relief as experts predict that food prices are set to drop this year.
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Food prices expected to drop in 2023
Consumers have been facing a tough economic climate, with inflation, interest rate hikes, and load shedding all taking their toll.
According to Stats SA, Consumer Price Inflation ticked upwards to 7.1% in March from 7.0% in February, despite many experts predicting a decline.
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The 14.0% year-on-year increase for food prices and non-alcoholic beverages was one of the biggest contributors to the overall inflation rate, contributing 2.4 percentage points to the total.
The increase was the largest annual increase since March 2009 (14.7%).
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In March, the sweets and desserts; fruits and vegetables; and the product category ‘other food products’ all saw massive upward inflationary pressure, while the milk, eggs & cheese product group saw its annual increase reach 13.6% from the recent 3.7% low in April 2022.
Consumers will have some respite as food prices is expected to ease in South Africa.
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Load shedding to impact the easing of food inflation
According to BusinessTech, Dawie Maree who is Head of Information and Marketing at FNB Agribusiness said; “We expect the prices for a majority of food items to start decelerating in the next 12 months.”
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However, Maree adds that FNB Agribusiness expects some food prices to drop, such as grains, thanks to an excellent crop and the easing of international prices.
“We expect an easing on food prices from the second half of the year, although it will be very much dependent on energy/fuel prices and possible price shocks on the international level, given the impact of the exchange rate. The probability of the latter is low at this stage.”
Dawie Maree
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Despite the easing of food inflation, consumers should not expect an immediate easing in prices as businesses continue to feel the effects of load shedding.
