Statistically, South Africa is experiencing the highest rate of food-price inflation since January 2003. From April 2007 to April 2008 the increase in the Consumer Food Price, as reported by Stats South Africa, was 15.7 percent.

Food categories where the prices have risen most included grain products, milk, cheese and eggs, fats and oils, fruits and nuts and vegetables. Most of these are products that people buy just to survive and the average increase on these items is higher than the given percentage.

Our people, however, are not interested in statistics, they are worried about not being able to put food on the table in their homes. The bottom line for us, politicians, should be that these rising costs continue to threaten food security, especially in poorer rural households.

In addition to the rising cost of fuel and the ever increasing interest rates, there is a real risk that South Africa could be heading for a recession as the costs of servicing debt and surviving on a daily basis become increasingly difficult for most citizens.

Interest rates alone have risen nine times since June 2006 with no sign of a break, following recent warnings from the Reserve Bank governor that the interest rate might go up by another two percent in mid-June.

Given the global increase in food prices which is out of our control, the government seems to care little for its citizens when it hikes the price of fuel and interest rates almost on a monthly basis.

While the IFP largely shares the government's concern about the spiraling inflation which the rising interest rates are intended to curb, we have repeatedly proposed a drop in the rate of taxation for fuel.

Another way to achieve lower fuel prices in the long run is to deregulate the oil industry so we can have real competition to ensure that industry and motorists can buy their fuel at the best possible prices without government intervention.

Dr Lionel Mtshali
Leader of the Official Opposition 

Contact: Dr Lionel Mtshali, 083 256 4902