SA’s unusually high food price inflation was expected to drop to single digits for the first time in a year, economists predicted on Monday. The downward trend is expected to continue despite another drought being forecast for later in 2017. The food inflation weighting, at 19%, is the largest contributor to the consumer price inflation (CPI) basket. The agricultural sector has endured a debilitating drought over the past two years, with a weak rand and rising input costs adding to the pressure in 2016. Within the food category, bread, cereals and meat have the highest weightings. Inflation data, which is compiled by Statistics SA, will be published on Wednesday. Economists’ forecasts vary from 6.3% to 6.4%. They expect food inflation to slide below January’s 11.4% in February. NKC Economics senior economist Elize Kruger forecast food inflation of 9.3% for February. Agbiz economist Wandile Sihlobo said conditions influencing prices had improved. Maize output, a major influence on fo...
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