Food price increases at lowest levels in 18 months
The Agricultural Business Chamber says the better-than-expected CPI figure is underpinned by lower food inflation.
CAPE TOWN - The Agricultural Business Chamber (ABC) says food price increases in April were at their lowest levels in 18 months.
The data was contained in Stats SA’s CPI announcement on Wednesday.
April’s inflation of 5.3% year-on-year exceeded market expectations.
For the first time since August, the inflation rate is within the Reserve Bank’s target range of between 3.6%.
The Agricultural Business Chamber’s Wandile Sihlobo says this better-than-expected figure is underpinned by lower food inflation.
“It means we’re paying the lowest prices in 18 months. I think that all of the recovery which we’ve been talking about on the agricultural side is starting to really take which is good for our pockets.”
Some experts, however, warn the trend is unlikely to continue in the long run and they expect inflation to drift closer to 6% in the coming months.
(Edited by Zamangwane Shange)