Rising cost of food will impact the poor, warns economist
An economist says while headline consumer price inflation held in February, poorer communities are still affected by rising prices.
Consumer Price Inflation (CPI) was unchanged in February, staying at the 5.7 recorded in January.
But there were increases in the price of food and transport.
Staple foods like maize meal went up by 3.7% and white bread up by 3.2%.
Dr Sanele Gumede from University of KwaZulu-Natal (UKZN) says this has a negative impact on the economy.
READ: Consumer inflation unchanged in February
"Those are the basic necessities of living. It really affects a lot the poor. They will really be affected by the food prices, but again, if you look at the income of the poor versus the rich, you see that it is a standing pattern.
"You will find that majority of the income from the poor goes straight to food."
He says it's not surprising given the rising cost of fuel.
"Suppliers, sellers and the producers are unable to swallow any more in the increasing fuel prices and its effect to the food prices that we see in stores."
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