Food prices expected to drop
The Pietermaritzburg Economic Justice and Dignity Group says it expects food prices to drop.
It's after the South African Reserve Bank cut interest rates by 25 basis points to 8%.
It's the first cut in four years.
The PMBEJD group tracks food prices monthly.
Its coordinator, Mervyn Abrahams says improved power supply and lower fuel costs support their prediction.
READ: Consumer inflation dips to 4.4% in August
"The only risk we are looking at is the drought in the North West that could impact maize prices.
"The geopolitical risks have come significantly down. Global food prices are at their lowest now that it has been in four to five years, so we expect that trend to continue."
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