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Higher Than Average Rainfall Expected in South Africa With La Nina

The transition of the El Nino weather pattern into La Nina should moderate food inflation, First National Bank says.

"There is a high probability of above-normal rainfall early in summer, which would lead to a good coming crop season," the bank’s senior agricultural economist, Paul Makube, said in a note on Monday.

"Should weather forecasts remain on course, we can expect agricultural production to bounce back by mid-2017 resulting in significant moderation in food prices, particularly grains. Fruit and vegetable prices could also ease towards the end of the year as conditions improve," the note said.

Neville Nel

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