Food prices are likely to keep surging
There is speculation that we may be entering another global commodity supercycle
25 March 2021 - 18:32
Food inflation has increased globally since late 2020, and there is speculation that we might be entering another global commodity supercycle characterised by structural demand shifts that push up prices.
In SA, consumer price index (CPI) headline inflation was recorded at 3.2% in January 2021 and food inflation made up 28% of this, even though food and nonalcoholic beverages make up only 17.24% of the total CPI basket. This supports the notion that food prices are a key factor in inflationary dynamics. Overall, we predict that the general price surge is likely to persist...
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