Major drivers of food inflation internationally include high agricultural commodity prices, exacerbated by challenging weather conditions, supply chain disruptions and rising energy prices. In January 2022, the FAO Food Price Index, a measure of underlying agricultural commodity prices, increased by 1% from December 2021. In real terms, the index has surpassed the previous highs of 2011 since October 2021. While the latest increase is modest, prices typically softened in January following the festive season. These global factors have driven inflation higher in many parts of the world and in January 2022 (as in December 2021) food inflation in South African was lower than the food inflation rates reported for Zambia, Kenya, Brazil and the USA.
