What is inflation?                                           

The Consumer Price Index (CPI) is the measurement of the average increase in prices of goods and services in an economy. It is a key indicator used by central banks to protect the value of the currency into the future. The current inflation rate in South Africa is 4.9%%. This means that your rand is worth 95.1 cents compared to a year ago.

CPI averages a basket of 400 items one of which is food which has increased by 6.9%. 

Whilst this becomes a concern amongst struggling South African households we can take some solace when comparing ourselves to other emerging countries:

Argentina 53.4%

Brazil 13.94%

Ethiopia 37.6%

South Sudan 35.11%

Syria 39.1%

Zimbabwe 54.5%

Zambia 31.6%

Deflation on the other hand is when prices year on year decrease. Some countries have experienced cheaper food inflation.

Japan -1.1%

Norway -2.9%

Switzerland -1.2%

UAE -1.53%

In economic speak price is determined by supply and demand where people are prepped to pay more when goods are scarce.

Food security is vital for an economy and we will have to navigate our way through all options to contain the price of food.