As economic pressures ease and consumer spending power declines, retail prices for beef may start dropping. However, the overall high food inflation is likely to persist unless the rand appreciates significantly.
The Bureau for Food and Agricultural Policy (BFAP) has pointed out that high agricultural commodity prices globally and high energy costs, which influence input prices, have driven up food inflation worldwide.
While global factors that have contributed to this are easing, the exchange rate depreciation offsets much of the global decline for emerging markets. Therefore, unless these costs drop significantly, food prices in general, including poultry, could remain elevated, but price correction signals are beginning to appear.