WANDILE SIHLOBO: Forecasts suggest food price inflation will start to slow
Global agricultural commodity prices in the second half are likely to continue to soften
If the questions I frequently receive through various media platforms and e-mail are anything to go by, I would say concerns about rising food price inflation still linger. These actually hold water, as various food product prices have been rising at a relatively faster pace.
For example, in June 2021 annual food price inflation accelerated to 7% from 6.8% in May, the fastest pace since June 2017. Ironically, this is after we have had one of the best agricultural seasons in the country’s history. To single out a few products, the 2020/2021 maize harvest is 16.2-million tonnes, the second-largest yet in SA. The soya bean harvest is the largest on record, and the same is true for citrus. With harvest figures like this it is understandable that folk continue to wonder why we are seeing rising food prices...