![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Bloomberg-braai-index.jpg\")
<\/a><\/figure>\n\n\n\nA sharp drop in onion and cooking oil prices of 28.5% and 13%, respectively, contributed to the fall in the index.\u00a0<\/p>\n\n\n\n
Lofty food prices have been a key driver of overall inflation in South Africa and have contributed to the central bank\u2019s monetary policy committee remaining cautious of lowering interest rates that have been kept at a 2009 high of 8.25% since May. <\/p>\n\n\n\n
South African Reserve Bank Governor Lesetja Kganyago, in an interview with Bloomberg on Wednesday (28 February), reiterated that the benchmark rate would only be cut once inflation has been tamed and cited food prices, geopolitical risks and their impact on global supply chains and energy markets as some of the upside risks to the outlook.<\/p>\n\n\n\n
Food prices may be adversely impacted by dryer weather in the coming months. Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, said last month’s high temperatures and disappointing rainfall across South Africa in February posed a threat to agricultural output, reversing some of the benefits of above-average rains that fell in major producing regions in recent months.<\/p>\n\n\n\n
The Shisa Nyama Index crunches data from the Pietermaritzburg Economic Justice and Dignity group of 14 key ingredients in barbecues \u2014 known locally as a braai \u2014 consumed in South African townships. <\/p>\n\n\n\n
To compile its survey, the PMBEJD\u2019s data collectors track food prices on the shelves of 47 supermarkets and 32 butcheries that target the low-income market in the greater areas of Johannesburg, Durban, Cape Town, Pietermaritzburg and the northwestern town of Springbok.<\/p>\n\n\n\n
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