Food price inflation in the baskets of low-income households’ edge up to 20% year-on-year, with maize meal up 40%
August 2016 saw the price of the PACSA Food Basket (a basket modelled to track food price inflation on low-income households) increase to its highest levels year-on-year.
The price of the August basket has increased by R318.67 (19.6%) from R1 623.75 in August 2015 to R1 942.42 in August 2016. Maize meal is a core driver of food inflation in the PACSA food basket, contributing around 12%. Along with the overall increase in cost of the PACSA Food Basket, maize meal (25kg) is also experiencing its highest levels y/y, with a 25kg bag costing R233.82; this is 39.6% (R66.35) more than it was a year ago (R167.46). Read the full statement and Barometer here.