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Notes on the escalation in food prices

Food prices, which accounts for 25,7% of the total basket of goods and services in the CPIX, rose by 14,3% y/y in February 2008. Over the past five years, the average inflation rates of some of the most important CPIX categories are indicated in the graph. It is interesting to note that, medical care, education, and fuel and power have all increased by more than food did.

Food prices are rising globally
Food price inflation has not been contained to South Africa. Over the past two years, global food prices have risen by 67% in dollar terms. The Economist Intelligence Unit's (EIU) index for food, feedstuffs and beverages (FFB) is estimated to have risen by 38% in 2007. more...