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WANDILE SIHLOBO: The current drought is bad, but not as bad as it could be

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However, the main upside risk for food price inflation in 2020 remains the weather

The near-term weather forecasts show prospects of 16mm and 60mm of rainfall this week over the summer rainfall areas of SASince the news that SA could be hit by yet another drought, a frequent topic of discussion has been its possible implications on SA’s food price inflation. This comes at a time when food price inflation has generally been subdued, having averaged 2.9% year-on-year in the first nine months of 2019.

This is because of relatively lower meat, milk, eggs and cheese prices, among other products, which managed to overshadow the price increases of grain-related products over this period.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

 

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