The report highlights a reduction in the cost of various food items, a welcome change against the backdrop of persistent loadshedding, logistical bottlenecks at rails and ports, and the ongoing global supply chain disruptions caused by conflicts in the Red Sea region.

The Commission notes a significant drop in producer prices for sunflower oil and eggs, the latter being affected by the avian flu outbreak.

Kagiso Zwane, an economist with the Competition Commission, stated that food inflation, which had previously soared to record levels, has seen a substantial decrease, settling at 5.1% in March.

Zwane further explained, "The producer price of eggs has begun to decrease, with a slower rate of transmission to the retail level. This suggests a period where retailers may be increasing their profit margins, although this could be a repercussion of the avian flu outbreak.

Additionally, the producer to retail price spread for frozen chicken is following a declining trend, in accordance with past patterns, despite a hike in producer prices last year."

--SABC--