![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/07\/nedbank-1.png\")
<\/a><\/figure><\/div>\n\n\nNedbank said that producer inflation will likely remain contained over the coming months. <\/p>\n\n\n\n
With the worst of the El Nino period, which brings dry conditions, ending, the upside risks to food prices have moderated. <\/p>\n\n\n\n
Lower global inflation will also mitigate the upside risk to local food prices. <\/p>\n\n\n\n
Nevertheless, the lagged impact of the extreme heat in 2024, which damaged the summer crop harvest, is set to affect food prices. <\/p>\n\n\n\n
In addition, fuel prices and the vulnerable rand remain risks to Nedbank’s outlook. <\/p>\n\n\n\n
“While relatively subdued global demand and ample supply will likely keep oil prices in check over the short term, ongoing geopolitical tension, particularly the Israel\u2013Hamas conflicts, still pose upside risks,” said Nedbank.<\/p>\n\n\n\n
“The rand remains a worry given its sensitivity to shifts in global risk appetite, which will likely remain volatile until US disinflation gathers compelling downward traction and the Fed starts its rate-cutting cycle.” <\/p>\n\n\n\n
“Any relapse in global growth or signs of a hard landing in the US could also trigger another bout of risk-off sentiment.” <\/p>\n\n\n\n
“Other operational costs will likely stay elevated. Producers will still be forced to absorb most of the cost pressures as weak consumer spending continues to limit the pass-through.”<\/p>\n\n\n\n
With petrol prices coming down in July as well, the figures coming next month should reflect much of the same.<\/p>\n\n\n\n
However, the easing of fuel prices has slowed significantly for August, with the latest data from the Central Energy Fund showing only a small cut on the cards of only a few cents per litre.<\/p>\n\n\n\n
\n\n\n\n