The Reserve Bank is presently grappling with this challenge of high food inflation as often monetary policy has to act as the first line of defence, even if it is a persistent supply side issue. However, managing food inflation from a medium-term perspective would include measures to increase production, improve productivity and enhance efficiency of supply chain management.
Consequently, the developments and discussions in international fora are closely monitored to ensure the ongoing alignment of the South African framework with international developments where applicable and appropriate.