In 2024, South Africa saw a notable slowdown in food inflation, with December recording a rate of 1.7%. Key contributors included significant price declines in staples like bread, maize meal, rice, and pasta. Egg prices even moved into deflation, with a drop of -3.0% in December 2024 from a peak inflation rate of 39.9% in November 2023.

Despite these declines, certain categories, such as vegetables (notably tomatoes and potatoes), experienced price increases due to adverse weather conditions. Early 2025, however, hints at renewed upward trends in food inflation, driven by rising costs in grains and vegetables.

Factors Likely to Drive Food Price Increases in 2025

• Adverse Weather: Droughts, floods, and heatwaves may disrupt crop yields and livestock production.
• Rising Fuel Prices: Contributes to higher transport and production costs.
• Electricity Costs & Load Shedding: Increased tariffs and power outages can disrupt food production, storage, and processing.
• Weak Exchange Rate & Imports: Weak exchange rate impacts the cost of input imports of fertilizers, animal feed, equipment, and food imports like wheat, rice, and vegetable oils.

While some relief was felt in late 2024, the increases in prices for some food items already seen in 2025 and prevailing uncertain economic conditions suggest that consumers may continue to face challenges related to food affordability in 2025.  Click here to read full article.