The decline in commodity prices has not been confined to industrial commodities. Global food prices, which along with oil prices were responsible for part of the inflation pressures experienced in the recent period, have also declined in the past few months.
Both the Economist Food Price Index and the IMF Food Price Index have declined by about 30 per cent since July of this year. The unfavourable global economic growth and commodity price developments suggest that while South Africa has managed to escape any untoward impact on its banking system, the real economy will not be immune to global developments.