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City food cheaper

Dec 01 2009 08:11 Hennie Duvenhage

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Cape Town - Food in the city is substantially cheaper than that in country districts.

According to The National Agricultural Marketing Council's latest quarterly report on food prices, the cost of a month's basic foods rose R35 to R376 between October 2008 and October this year, representing a 10% increase.

In urban areas a basket of such groceries is on average R15.46 cheaper than it is in rural areas.

It has been found, for instance, that the price of maize products in urban areas has dropped by 2.01% while in the country it is 4.48% up.

South Africa's food inflation between October 2008 and October this year was running at 5.3%, compared with the 5.9% overall inflation rate.

Tanzania's food inflation registered 18.1%, compared with the US's 0.1%.

It was the prices of grain products, in particular, that considerably declined during the period under review, principally in urban areas.

The report also says that the inflationary pressure on unprocessed animal protein also declined to a large degree.

Inflationary pressure on processed products remained strong. The pressure on fresh vegetables has not yet let up, but the increasing prices for fresh fruit do show signs of deceleration.

It appears that the biggest hikes in food prices took place between October 2008 and January this year.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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