South Africa Inflation Soars as Food Prices Increase

A file photo of food items in a market

Inflation in South Africa edged higher in March with food prices recording the highest year-on-year jump in more than a decade, official figures showed Wednesday.

Inflation for food and non-alcoholic beverages continued to accelerate and was up 14 percent on March last year, national statistics agency StatsSA said in a statement.

“This represents the largest annual increase since the 14.7% rise in March 2009,” the agency said.

Overall, consumer inflation rose to 7.1 percent last month from 7.0 percent in February and 6.9 percent in January.

Milk, eggs, cheese, sugar, fruit and vegetables were among the most affected products, the agency said.

In a bid to rein in soaring costs, the central bank sharply raised its main interest rate half a percentage point to 7.75 percent last month.

Inflation has been on the up worldwide, fuelled by supply chain disruptions after the easing of Covid restrictions as well as surging energy and food prices following Russia’s invasion of Ukraine.

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