Food price inflation is at 11.3%. What’s driving this (and how high can it go)?

The inflation rate declined to 6.2% in April from 6.3% in March.

However, food prices skyrocketed by 11.3%.

The Money Show’s Bruce Whitfield interviewed Professor Johann Willemse, Agriculture Economist at the University of the Free State.

Willemse discussed the following:

  • Is this the result of a perfect storm of a weak rand and a severe drought?

  • What is lying ahead for food prices?

  • Which types of food are driving this?

Scroll down for quotes from the audio below.

We’re heading into winter. The supply of fruits and vegetables will not increase until early 2017.

Professor Johann Willemse

We’re looking at food inflation at 15% by the end of the year.

Professor Johann Willemse

Wheat makes up about 20% of a bread’s cost. There are substantial extra costs.

Professor Johann Willemse

We’re looking forward to a better season.

Professor Johann Willemse

2017 will, hopefully, be a better year.

Professor Johann Willemse

About 1 out of 4 South Africans can’t afford sufficient food. It’s not a good place to be as a country. It adds to social instability.

Professor Johann Willemse

Why can’t government subsidise some basic foods for poor people? Why don’t they look at food stamps like some other countries?

Professor Johann Willemse

The people at the top don’t realise the pressure that poorer people are under.

Professor Johann Willemse

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the seven most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Read More
9 most dangerous words in the English language at this time of year

9 most dangerous words in the English language at this time of year

Many people are uttering these nine words around this time of year. Come January they’ll be sorry, but it’ll be too late.

Eskom seems against its own (wildly successful) green energy programme

Eskom seems against its own (wildly successful) green energy programme

Why is Eskom, seemingly, sabotaging the world’s fastest-growing green energy programme?

How to build an African art portfolio (that'll grow in value)

How to build an African art portfolio (that'll grow in value)

Walker Scott Art Advisory’s Dr Fred Scott gives advice on building a high growth African art portfolio.

How to be a lion (a review of a book on daring to dream and living fearlessly)

How to be a lion (a review of a book on daring to dream and living fearlessly)

The Money Show’s Bruce Whitfield interviewed Rakesh Wahi (CNBC Africa and Forbes Africa) for his weekly business book review.

John Berks ("the least amiable man on radio") hilariously opens up about money

John Berks ("the least amiable man on radio") hilariously opens up about money

What does 702’s former Breakfast Show host John Berks believe, hope for and fear about money? Does he have, and want, lots of it?

3 shares you’ll do well to buy before Christmas (by Nedbank Private Wealth)

3 shares you’ll do well to buy before Christmas (by Nedbank Private Wealth)

Make some money, buy these three stocks, says portfolio manager Dino Voulakis.