Research Briefing | May 11, 2022

Food price inflation could hit Africa the hardest

Higher international food prices will have a more aggressive impact on African CPI readings than those in advanced economies. This is due to heavier weightings of foodstuffs in CPI baskets. But the impact will extend far beyond headline CPI prints: calls for subsidies will either be heeded, putting pressure on the fiscus, or disregarded, resulting in social discontent.

What you will learn:

  • South Africa and Nigeria are taking advantage of commodity price tailwinds to plaster over deep underlying economic issues.
  • Food prices have trended higher over the past two years, and the war in Ukraine has exacerbated this trend.
  • While the cost of essentials has increased, many African countries including South Africa, Nigeria, Kenya and Morocco struggle with unemployment rates much higher than pre-pandemic levels.

Back to Resource Hub

Related Services

Small - Africa Forecasting Service

Service

Africa Forecasting Service

Comprehensive analysis of immediate and long-term economic and political prospects to inform investment strategies, expansion and African operations through forecasts and commentary by country, industry, and city.

Find Out More
industry

Service

Global Industry Service

Gain insights into the impact of economic developments on industrial sectors.

Find Out More
globe

Service

Global Macro Service

Monitor macro events and their potential impact.

Find Out More
Flags of Middle East and North Africa countries

Service

MENA Forecasting Service

Monitor the implications of economic and market developments in the MENA region.

Find Out More