The General Agriculture Workers Union (GAWU) has projected that prices of food items will remain elevated until June 2024, coinciding with the onset of the harvesting season.
Despite a decline in food inflation over the past six months, reaching 27.1% in January 2024, GAWU anticipates sustained high prices due to prevailing agricultural conditions.
In an interview with Joy Business, General Secretary Edward Kareweh emphasized that the current period represents the lean season for agricultural production nationwide, with no significant food harvesting occurring, especially for staple crops like maize and rice.
Kareweh highlighted the absence of rainfall across most regions, signaling challenges for agricultural activities. He noted that food supplies predominantly consist of last year’s harvest, underscoring the prolonged high prices in the market.
Looking ahead, Kareweh expressed expectations for further price increases by mid to late March 2024, persisting until the commencement of harvesting in the Southern parts of the country around June or July.
Additionally, GAWU’s analysis revealed disparities in inflation rates across various commodity categories. Ten out of fifteen sub-classes registered inflation rates exceeding the overall food inflation rate, with seven divisions surpassing the national average.
These divisions include Alcoholic Beverages, Tobacco, and Narcotics (38.5%); Personal Care, Social Protection, and Miscellaneous Goods and Services (32.0%); Restaurants and Accommodation Services (29.2%); Furnishings, Household Equipment, and Routine Household Maintenance (27.7%); Food and Non-Alcoholic Beverages (27.1%); Health (26.6%); and Recreation, Sports, and Culture (24.9%).
The forecast of prolonged high food prices underscores the challenges faced by consumers and policymakers in mitigating the impacts of food inflation on household budgets and overall economic stability.
