Rand recovery may stabilise price of grain imports: analyst
A food price analyst says there could be light at the end of the tunnel for food inflation as the rand reaches its strongest levels since Nene-Gate.
This as the Bureau for Food and Agricultural Policy releases its latest research on food inflation expectations for 2016 and beyond.
Bfap’s Marlene Louw says while the drought is still expected to continue impacting food prices, a stronger rand should help buffer the high cost of maize and wheat imports in the short-term.
She says the rand value has this week strengthened to levels not seen since former finance minister Nhlanhla Nene was unexpectedly fired in December.
"The requirement is the need to be serviced by imports. The fact that our exchange rate is stronger would definitely alleviate some of the [challenges] that we have been experiencing," she said.
(File photo)