South Africans have been warned to ready themselves for a hike in the price of bread because of Russia’s war with Ukraine.
The chief executive of the National Debt Advisor, Sebastian Alexanderson, said that while South Africa may be far from the war, the ramifications of the raging dispute were likely to be felt here in a month or two.
The average price of bread in South Africa is R15 a loaf. Bread is consumed as a staple, affordable food.
"In South Africa we are the last to feel what is happening around the world. The West is sanctioning Russia, which is one of the largest wheat exporters in the world, which in turn means there's going to be a short supply of wheat around the world," Alexanderson said.
He said the increase would affect most imported goods. Already hyperinflation had hit the shores of Canada, the US and the UK.
"Which means if you are trying to buy things from abroad, those things we cannot get on our shores, from medicines to electronics to all those items, are already going up across the ocean. We are already paying a high import duty and I think the price of goods is steadily going up," Alexanderson said.
He said South Africans were advised to spend carefully and ensure financial health in these tough times. He said the Covid-19 pandemic had destabilised economies and the war could only make things worse.
"I think they will increase the price of bread gradually, but some of the stores will try to absorb some of the prices. Hopefully the price wars will be decent," he said.
Economist Makwe Masilele said the rise in the price of bread was not as clear cut as some experts predicted because some stores produced their own bread.
"The dynamics are not as simple and straightforward because you have competition when it comes to the bread industry. There are already supermarkets that are manufacturing their own bread. There is Sasko, which wants to regain the market share," Masilela said.