South Africa's Bumper Harvest Expected to Keep Food Prices Low

South Africa is expected to continue enjoying lower food prices in the coming months due to its abundant agricultural harvest. The country's consumer food price inflation slowed down to 0.6% in July 2026, a significant decrease from 1.4% in June.

This decline in inflation can be attributed to the large supplies of grain-related products, fruits and nuts, and vegetables, which have been boosted by an excellent harvest triggered by La Niña rains during the previous season.

The production of summer grains and oilseeds in South Africa is forecasted at a record 21.6 million tonnes, up 5% from the 2024-25 season. This ample harvest has resulted in grain prices being kept under pressure due to already large stocks from the past season.