a close look at inflation in South Africa
Food prices in South Africa are rising. Photo by Chen Cheng/Xinhua via Getty Images

Home » WATCH: Food prices expect to drop in SA [VIDEO]

WATCH: Food prices expect to drop in SA [VIDEO]

According to experts, South Africans can afford to breath a sigh of relief in 2023 as food prices are expected to drop. South Africans can breathe a sigh of relief as experts predict that prices are set to drop this year. ALSO READ: LIST: Vehicles that are mostly targeted in hijackings in South Africa FOOD PRICES […]

11-05-23 13:03
a close look at inflation in South Africa
Food prices in South Africa are rising. Photo by Chen Cheng/Xinhua via Getty Images

According to experts, South Africans can afford to breath a sigh of relief in 2023 as food prices are expected to drop.

South Africans can breathe a sigh of relief as experts predict that prices are set to drop this year.

ALSO READ: LIST: Vehicles that are mostly targeted in hijackings in South Africa

FOOD PRICES EXPECTED TO DROP IN 2023

Consumers have been facing a tough economic climate, with inflation, interest rate hikes, and load shedding all taking their toll.

According to Stats SA, Consumer Price Inflation ticked upwards to 7.1% in March from 7.0% in February, despite many experts predicting a decline.

ALSO READ: LIST: WhatsApp will stop working on these smartphones

The 14.0% year-on-year increase for food and non-alcoholic beverages was one of the biggest contributors to the overall inflation rate, contributing 2.4 percentage points to the total.

The increase was the largest annual increase since March 2009 (14.7%).

ALSO READ: DA wants government to add more VAT-free items as food prices skyrocket

In March, the sweets and desserts; fruits and vegetables; and the product category ‘other food products’ all saw massive upward inflationary pressure, while the milk, eggs & cheese product group saw its annual increase reach 13.6% from the recent 3.7% low in April 2022.

Consumers will have some respite as food prices is expected to ease in South Africa.

ALSO READ: Rising inflation: Index shows increase in cost of core foods

LOAD SHEDDING TO IMPACT THE EASING OF FOOD INFLATION

According to BusinessTech, Dawie Maree who is Head of Information and Marketing at FNB Agribusiness said; “We expect the prices for a majority of food items to start decelerating in the next 12 months.”

ALSO READ: Soaring prices in South Africa push inflation up: The scary numbers

However, Maree adds that FNB Agribusiness expects some food prices to drop, such as grains, thanks to an excellent crop and the easing of international prices

“We expect an easing on food prices from the second half of the year, although it will be very much dependent on energy/fuel prices and possible price shocks on the international level, given the impact of the exchange rate. The probability of the latter is low at this stage.”

Dawie Maree

ALSO READ: Truecaller will soon integrate it’s services into WhatsApp

Despite the easing of food inflation, consumers should not expect an immediate easing in prices as businesses continue to feel the effects of load shedding.