Agriculture minister John Steenhuisen has welcomed the drop in food inflation to a 14-month low but warned that record-high fuel prices are threatening the agricultural sector.
Consumer Price Index (CPI) data released by Statistics SA on Wednesday showed a decline in annual food and non-alcoholic beverages inflation to 2.9% in April 2026, down from 3.6% in March.
This is the lowest food inflation rate in 14 months and the third consecutive month of decline.
Steenhuisen said while consumers saw relief at the grocery stores, the farming community was absorbing a significant financial shock.
“Lower food prices today cannot hide the heavy operational burdens our producers face due to escalating energy costs. We need to find ways to ease input costs for farmers,” Steenhuisen said.
The ministry said the decline in food inflation occurred alongside a major inflation surge in the energy sector.
In April, the national fuel index rose by 18.2% from March, representing the steepest single-month increase recorded since the current CPI series began in 2008.
Steenhuisen said fuel, primarily diesel, is a crucial input for South African farmers, typically accounting for 11% to 18% of total production and logistics costs.
With farmers having no control over the price of goods they sell, they struggle to pass these high energy costs on to consumers, putting pressure on profit margins across grain, fruit and livestock sectors.
Steenhuisen said the global oil markets might remain volatile for some time, caused by ongoing conflicts in the Middle East. If these tensions triggered further fuel price increases later in the year, production and logistical costs will rise, he said.
Despite energy pressures, specific agricultural interventions and market cycles reduced key food prices in April.
Meat inflation slowed from 11.6% in March to 9.4% in April, driven by the ongoing slaughter of cattle connected to national foot-and-mouth disease management strategies. Stewing beef decreased from 22.6% to 8.7%.
The grains and cereal category recorded its third consecutive month of deflation. Maize meal, white rice, basmati rice, porridge and bread flour are cheaper than they were a year ago.
Milk, dairy and eggs recorded an annual shift to 0.1% from March’s –0.5%, marking their first annual increase since May 2025. Powdered milk (-3.4%) and eggs (-5.8%) remain in deflation.
Steenhuisen said the agriculture department remained committed to working with agricultural bodies, logistics networks and state resources to identify mechanisms to ease input costs for farmers.
“Protecting producers from global energy shocks is necessary for long-term national food security,” Steenhuisen said.
TimesLIVE
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