South Africa: Shisa Nyama index, Braai food prices are cooling

The price of a traditional South African barbecue rose at a slower pace for a second straight month, suggesting that food costs may cool further before the El Niño weather phenomenon scuppers the downward trend. Bloomberg’s Shisa Nyama Index, an early indicator of where food inflation may be heading, shows the average price of a backyard braai rose 1.3% in March from a year earlier, compared with 2.5% in the prior month. Official food inflation slowed for a third straight month in February to 6% and headline price growth quickened to 5.6%. Onion, cooking oil, carrots, and corn meal prices were the biggest contributors to the decline in the index. Still, the drop in the gauge may be short-lived. Central bank Governor Lesetja Kganyago said at a monetary policy committee briefing on Wednesday that South Africa is “at a difficult juncture” regarding food prices. Hot and dry weather caused by El Niño may lead food inflation to pick up again, he said. The dry spell that’s persisted ...