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Kaya Biz: Food prices expected to skyrocket ahead of Christmas

Kaya 959 Reporter

Petrol increase to a record high of R19.54 per litre and as a result, the cost of food ahead of Christmas is expected to increase.

Agri SA’s chief economist Kulani Siweya supports this expectation.

He says that South Africans should brace themselves for higher food costs this festive season.

“The recent fuel price does not bode well for the inflation profile in the short- to medium-forecast horizon, particularly food inflation. This is also exacerbated by the fact that there are other cost-push pressures, like fertiliser costs and electricity costs,”

Also Read: Kaya Biz: Supply of Savanna Cider in SA has run dry

Siweya, spoke to Gugulethu Mfuphi on Kaya Biz and warned that in the short-term costs are going to continue going higher.

“We should be expecting higher food prices, especially meat and poultry, this is mostly underpinned by global prices which have impacted domestic prices. These prices were as a result of slaughter numbers being low and the demand rising. As we enter the festive season the demand will also be higher. “

Also Read: Kaya Biz – Car For You, an innovative rent-to-own vehicle financing model

How will food prices affect South African consumers?

The Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD) warned that it’s going to be a bumpy ride for South Africans.

“The escalating crude oil price which is predicted to continue its surge, will not only increase fuel prices but will increase the cost of many inputs into agriculture, processing, and packaging. Crude oil is a core component in fertilizers and pesticides, plastics, and packaging. If the rand weakens, these costs will increase.”

The index tracks food price data from 44 supermarkets and 30 butcheries:

Johannesburg

  • Soweto
  • Alexandra
  • Tembisa
  • Hillbrow

Durban

  • KwaMashu
  • Umlazi
  • Isipingo
  • Durban CBD
  • Mtubatuba

Cape Town

  • Khayelitsha
  • Gugulethu
  • Philippi
  • Langa
  • Delft
  • Dunoon

Pietermaritzburg

Springbok

According to (PMBEJD) higher food prices, together with higher electricity prices and taxi fare hikes, are putting enormous pressure on the household budgets.

Written by: Zuko



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