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The Political Economy Of Food Price Inflation In South Africa

Author

Listed:
  • Kirsten, Johann F.
  • Vink, Nick
  • Scheepers, D.
  • Meyer, Ferdinand H.
  • Calcaterra, M.
  • Jenkins, Lindie

Abstract

This paper reports on a study that investigated the increase in food prices in South Africa. It is set against the scenario of an increasing inflation rate since September 2001. The June 2002 STATSSA figures estimated the annual inflation rate (CPIX) at 8.8% with food inflation being the major contributor with an annual increase of 14%. The high unemployment and poverty rate in South Africa has already lead to concerns about the negative impact of these increases on the cost of living for the poorest. In this paper we show that the sharp depreciation of the exchange rate towards the end of 2001 had a major impact on the producer price of maize - one of the key agricultural commodities because of its role as a staple food and as an input in the production of white and red meat and other animal products.

Suggested Citation

  • Kirsten, Johann F. & Vink, Nick & Scheepers, D. & Meyer, Ferdinand H. & Calcaterra, M. & Jenkins, Lindie, 2002. "The Political Economy Of Food Price Inflation In South Africa," Working Papers 18075, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    • Handle: RePEc:ags:upaewp:18075
    DOI: 10.22004/ag.econ.18075
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    Cited by:

    1. Joseph Kargbo, 2007. "The effects of macroeconomic factors on South African agriculture," Applied Economics, Taylor & Francis Journals, vol. 39(17), pages 2211-2230.

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