A notable jump in SA food price inflation

A notable jump in SA food price inflation

While in some regions of the world, consumer food price inflation has started to cool off; South Africa sees the opposite. The data released this morning by Statistics South Africa shows that consumer food price inflation accelerated to 13,8% y/y in January 2023 from 12,7% in the previous month.

Rice prices

Rice prices

After a year of generally subdued global rice prices, this year started with a notable increase in prices from various origins. With South Africa being a net importer of rice, the worldwide surge of prices presents upside risks to consumer food price inflation.

Ride out temporary price swings

Ride out temporary price swings

The SA government or its entities, such as the Competition Commission, should not react to these temporary price swings. Instead, they should continuously monitor key staple food markets to understand trends and police bad behavior if it shows in the future. For now, the SA grain markets are operating reasonably well.

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