Rising maize and wheat prices are reducing the chances that South Africa's main inflation rate will slow in line with central bank forecasts, increasing the risk of another interest rate hike.
South Africa's central bank last year raised interest rates by a cumulative 200 basis points as it battled to keep inflation within its target band of 3-6%.
The Reserve Bank halted its tightening cycle in mid-February on an improved inflation outlook and predicted that CPIX inflation - targeted for monetary policy - will peak at 5.6% in the second quarter before easing to average 4.7% in 2008.
Read more at FIN24.co.za
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