Greater Food Price Inflation Remains A Risk

Consumers across the emerging world in particular have been hit hard by rising food prices. In many cases food price inflation is rising at a faster rate than headline inflation as high grain prices continue to push up the cost of basic necessities, which is particularly significant when food makes up big chunk of consumers' spending. However, thanks largely to a strong rand, the South African consumer has largely been spared the worst of this so far. As the first chart shows, the imported inflation-fighting rand is up significantly against the US dollar since early

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