Agriculture
Food inflation edges up, but experts say no cause for alarm─── 17:38 Wed, 23 Jul 2025
South Africa’s consumer food price inflation rose to 4.7% year-on-year in June 2025, the highest level in 16 months, up from 4.4% in May.
The increase was driven mainly by price hikes in meat, oils and fats, and vegetables. However, economists believe this rise does not signal a worrying trend.
According to agricultural economist Wandile Sihlobo, the spike in meat prices stemmed from two temporary disruptions: a bird flu outbreak in Brazil, which briefly halted poultry imports, and a local foot-and-mouth disease outbreak that led to panic buying. “Both situations have since stabilised, with poultry imports resuming and red meat slaughtering operations returning to normal.”
South Africa’s food inflation rises again. pic.twitter.com/GgwNajszsq
— Wandile Sihlobo (@WandileSihlobo) July 23, 2025
The increase was driven mainly by price hikes in meat, oils and fats, and vegetables. However, economists believe this rise does not signal a worrying trend. According to agricultural economist Wandile Sihlobo, the spike in meat prices stemmed from two temporary disruptions: a bird flu outbreak in Brazil, which briefly halted poultry imports, and a local foot-and-mouth disease outbreak that led to panic buying.
“Both situations have since stabilised, with poultry imports resuming and red meat slaughtering operations returning to normal.”
Oils and fats followed global trends, with elevated prices linked to strong international demand, particularly for palm oil.
Short-term weather-related supply issues
“However, South Africa’s solid sunflower seed crop is expected to ease local supply concerns in the coming months.” Vegetable prices also rose in June, but this is attributed to short-term weather-related supply issues.
Analysts expect vegetable availability to improve significantly in the second half of 2025. Despite the June uptick, food inflation remains moderate overall. The combination of ample grain stocks, a promising fruit harvest, and stabilising meat supplies is expected to help contain food prices in the months ahead.
Meanwhile, South Africa’s headline consumer price inflation (CPI) stood at 3.0% in June, up slightly from 2.8% in May.
