South Africa’s consumer food price inflation continues to slow. Figures released by Stats SA on June 17 show that consumer food price inflation slowed to 1.6% in May, down from 2.8% in March. This is the lowest level in 17 months.
There was a broad deceleration across various food products. At the core of moderating consumer food price inflation are lower prices for grains and oilseeds and fruit and vegetables, driven by ample domestic and global supplies. We continue to believe that meat poses minimal risks to inflation, and meat price inflation has slowed in recent months. Base effects on meat prices, along with continued cattle slaughter, have helped ease price inflation. Poultry production conditions are also favourable.
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