Food Price Pressures Weigh Heavy on Southern Africa

09 Jan 2012
tight grain supply outlook after several bumper harvests is set to fan food price pressures in southern Africa, fuelling salary demands and threatening to knock the region's fragile economies out of kilter. Erratic rains have delayed the planting of the crucial maize crop in Zambia, pushing inflation towards double digits, while bread basket South Africa is importing the staple despite abundant harvests because of worries it has exported too much. With a high proportion of households in the region spending much of their limited income feeding themselves, rising food inflation is likely to further stoke union demands in wage negotiations.

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