While welcoming the drop in food inflation to its lowest level in 14 months, Agriculture Minister, John Steenhuisen, has warned that soaring fuel prices are threatening South Africa’s agricultural sector.
The Consumer Price Index (CPI) data released by Statistics South Africa on Wednesday, showed that annual food and non-alcoholic beverages inflation eased to 2.9% in April 2026, down from 3.6% in March.
The decline marks the third consecutive month of easing food inflation, providing some relief for consumers struggling with the cost of living.
However, the easing in food inflation coincided with a sharp increase in fuel costs.
According to the CPI data, the national fuel index rose by 18.2% in April compared with March - the steepest single-month increase since the current CPI series began in 2008.
Petrol prices increased by 15.2%, with inland 93-octane petrol rising from R20.19 to R23.25 per litre.
Diesel prices surged by 35.4%, climbing from R21.28 to R28.80 per litre.
Steenhuisen said diesel remained one of the most critical production inputs for farmers.
“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 being price takers, they struggle to pass these high energy costs onto consumers, putting pressure on profit margins across grain, fruit, and livestock sectors,” Steenhuisen said.
The Minister warned that instability in global oil markets linked to ongoing conflict in the Middle East could worsen the situation later this year.
“It [also] needs to be noted that the global oil markets might remain volatile for some time, caused by ongoing conflicts in the Middle East. If these tensions trigger further fuel price increases later in the year, production and logistical costs will rise. This creates an uncertain outlook where domestic progress on food inflation could be reversed by global shocks.”
Meat and grain prices ease
Despite pressure from fuel costs, several food categories recorded slower inflation or continued deflation during April.
Meat inflation slowed from 11.6% in March to 9.4% in April, partly due to increased cattle slaughter linked to national Foot-and-Mouth Disease management measures.
Beef mince inflation slowed from 22.2% to 15.3%, while stewing beef inflation declined sharply from 22.6% to 8.7%.
The grains and cereals category recorded its third consecutive month of deflation, with products such as maize meal, white rice, basmati rice, porridge, and bread flour all cheaper than a year ago.
Milk, dairy and eggs shifted to a marginal annual increase of 0.1% in April, compared with -0.5% in March, marking the category’s first annual increase since May 2025.
However, powdered milk and eggs remained in deflation at -3.4% and -5.8% respectively.
The Department of Agriculture said it will continue 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.
The Consumer Price Index (CPI) data released by Statistics South Africa on Wednesday, showed that annual food and non-alcoholic beverages inflation eased to 2.9% in April 2026, down from 3.6% in March.
The decline marks the third consecutive month of easing food inflation, providing some relief for consumers struggling with the cost of living.
However, the easing in food inflation coincided with a sharp increase in fuel costs.
According to the CPI data, the national fuel index rose by 18.2% in April compared with March - the steepest single-month increase since the current CPI series began in 2008.
Petrol prices increased by 15.2%, with inland 93-octane petrol rising from R20.19 to R23.25 per litre.
Diesel prices surged by 35.4%, climbing from R21.28 to R28.80 per litre.
Steenhuisen said diesel remained one of the most critical production inputs for farmers.
“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 being price takers, they struggle to pass these high energy costs onto consumers, putting pressure on profit margins across grain, fruit, and livestock sectors,” Steenhuisen said.
The Minister warned that instability in global oil markets linked to ongoing conflict in the Middle East could worsen the situation later this year.
“It [also] needs to be noted that the global oil markets might remain volatile for some time, caused by ongoing conflicts in the Middle East. If these tensions trigger further fuel price increases later in the year, production and logistical costs will rise. This creates an uncertain outlook where domestic progress on food inflation could be reversed by global shocks.”
Meat and grain prices ease
Despite pressure from fuel costs, several food categories recorded slower inflation or continued deflation during April.
Meat inflation slowed from 11.6% in March to 9.4% in April, partly due to increased cattle slaughter linked to national Foot-and-Mouth Disease management measures.
Beef mince inflation slowed from 22.2% to 15.3%, while stewing beef inflation declined sharply from 22.6% to 8.7%.
The grains and cereals category recorded its third consecutive month of deflation, with products such as maize meal, white rice, basmati rice, porridge, and bread flour all cheaper than a year ago.
Milk, dairy and eggs shifted to a marginal annual increase of 0.1% in April, compared with -0.5% in March, marking the category’s first annual increase since May 2025.
However, powdered milk and eggs remained in deflation at -3.4% and -5.8% respectively.
The Department of Agriculture said it will continue 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.
