GROCERY PRICES
Slowdown in food inflation set to ease burden
Meat, fruit and vegetables remain expensive items, but lower bread and cereal prices offer relief
Average middle-income earners spend 28% of their salary on food, so the stable inflation environment will bring much-needed relief at the till, say economists, who have noted slight improvements in the prices of staples such as bread and cereal. Meat, fruit and vegetables remain expensive items on grocery slips, but the pinch consumers have been experiencing for a while now has been eased slightly by lower bread and cereal prices. The food component of the producer price index (PPI) slowed to 1.0% while the consumer price index (CPI) showed that food inflation had moved lower in December at 4.9%. In February 2017, food inflation was as high as 10.0%. Drought was blamed for the high food inflation, which resulted in substantial hikes of food over the past two years. Over the past three years, the price of bread has risen nearly twice as fast as the inflation rate. But bread and cereal prices, which make up nearly a third of the national food inflation basket, have dropped 5%. Consume...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.