High meat inflation remains worrying
The new data was part of Stats SA's release on Wednesday, which showed the overall inflation rate has pulled back even further in July to 4,6%.
CAPE TOWN - The Agricultural Business Chamber says although it welcomes the lower food inflation rate, the meat items in the basket remains worrying.
The data was part of Stats SA's release on Wednesday, which showed the overall inflation rate has pulled back even further in July to 4,6%.
But Agricultural Economist Wandile Sihlobo says the high meat inflation rate of 14,4% was unexpected.
“This could be because of the avian influenza within the poultry space. We do see that farmers are slaughtering more and more. There is some normalisation there.”
Meanwhile, economist Kamilla Kaplan says the drop in the fuel price in July is among the biggest contributing factors to the slowing rate in July.
She adds this could translate to relief for indebted consumers in the future.
“The lagged effects of rand depreciate and weak economic demand environment helps inflation to subside. The improved inflation trajectory coupled with weak economic growth prospects suggests a further interest rate reduction this year is possible.”