According to PMBEJD programme co-ordinator Mervyn Abrahams, indications are global commodity prices of grains, oilseeds and crude oil, among others, are stabilising.
“This means imported inflation is likely to be lower, and we should begin to see some of this filtering through. We are further likely to see lower fuel prices next month. However, while we may start to see food prices stabilising, it is not clear when prices will begin to fall.”
He said although the cost of the average household food basket continues to rise, the data over the past three months is starting to show a moderation in prices.
“This month, although still rising, the higher increase in the average household food basket is driven by a spike in the Cape Town basket (up by R157,41). The spike in the Cape Town basket has driven up the monthly increase of the average household food basket by approximately R20.”
Abrahams cautioned that moderation of food prices does not necessarily mean more money in people’s pockets, “because July and August bring with them increases in taxi fares and higher electricity tariff prices”.
“Pressures will therefore remain on households’ ability to afford their basic expenditures for the foreseeable future.”