All data is delayed
Loading...
See More

High food prices - greater threat to SA’s stability than poor leadership

Mar 24 2016 19:00

The falling Rand has a very dark side. After yesterday’s news that the country’s official inflation has now climbed above the SA Reserve Bank’s target range, we now understand why interest rates had to be hiked last week despite SA’s sluggish economic growth. The nation continues to pay for Nenegate.

Although few join the dots, it’s the poorest who are hit hardest by this sliding currency and the consequent higher inflation. Pietermaritzburg-based Pacsa’s food basket for January is up 9% in the past three months and over 14% in the year.

It is being driven there by price rises in imports like rice (12% in the last quarter) and drought affected staples samp (up 36% year on year) and maize meal (21% higher than January 2015).

Most pundits regard poor political leadership as the greatest threat to South Africa’s stability. They are missing a more pressing challenge. Arab Spring was sparked by higher food prices.

From Biznews community member Ian Jayes

"Oliver Cromwell said almost 400 years ago: “An empty stomach hath no law”

* For more in-depth business news, visit biznews.com or simply sign up for the daily newsletter.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

biznews  |  politics 2016  |  inflation  |  food prices
NEXT ON FIN24X

 
 
 
 

Company Snapshot

BizNews Premium
Learn More
Loading...