Food basket prices up by over R500 in a year confirms cost-of-living crisis

The latest food basket price confirms the cost-of-living crisis facing low-income and even middle-income consumers in South Africa, with the average basket price increasing by R26,72 compared to July and R534,47 compared to August 2021.

Key data from the August 2022 Household Affordability Index conducted by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) which tracks food price data from 44 supermarkets and 30 butcheries, in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok shows that the average cost of the Household Food Basket was R4 775,59 in August.

The PMBEJD notes that the year-on-year data shows a moderation compared to months before August 2021, because the July 2021 unrest caused food prices to spike unprecedently thereafter in Durban, Pietermaritzburg and Johannesburg.

Month-on-month data is showing a lowering of inflation on the total basket price for the second consecutive month, with inflation on fewer foods within the basket compared to previous months. In August, the prices of 21 of the foods increased, which was notably lower than previous months when the prices of 31 of the food items increased in July, 29 in June, 28 in May and 35 in April.

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Food basket price is slowing down, not reversing

However, the PMBEJD says, while the monthly price increases appear to be lowering, the household basket is still increasing, although at a slower pace.

“We are not yet seeing any significant decrease in prices which would bring down the total cost of the household food basket in a substantial way and alleviate pressures on households.”

With no decreases yet in sight and higher taxi fares now effected and for many prepaid users, high electricity tariff increases well beyond the regulated 7,47%, women are struggling.

“Progress in tackling the job crisis is too slow and wages for those who do have a job and people who are able to access some form of social grant, are still far too low and are decimated by higher costs of transport, electricity and food,” PMBEJD says.

The high cost of food remains a major crisis for millions of South African families and continues to frustrate peoples need to live a full productive life, to be able to afford proper nutritious food, be healthy and well and in control of their future.

“This month, we are hearing women say that they feel the streets are becoming markedly more unsafe. More people are getting robbed. There is a feeling that more people are in trouble and desperate and willing to steal to survive. There is a tension, a bad feeling in the air.”

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Average food basket prices

The average price of the food basket increased in Johannesburg (R117,02 compared to July and R557,37 compared to August 2021), Springbok (R13,18 compared to July and R367,49 compared to August 2021) and Pietermaritzburg (105,40 compared to July and R577,34 compared to August 2021) and decreased in Durban (R44,11 compared to July and increase by 519,27 compared to August 2021) and Cape Town (R23,63 compared to July and increased by R543,90 compared to August 2021).

The price of maize meal continued to climb across all areas, while flour prices also increased in all areas except Durban. The price of cooking oil continued to increase in Joburg, by a further R7,08 with a 5L bottle costing R246,91.

Johannesburg and Pietermaritzburg also saw very high increases on bread (4% for white bread and 8% for brown bread), while Johannesburg had high increases across most meats tracked, with beef increasing by 7%. Frozen chicken prices increased everywhere except in Springbok, while tomatoes, butternut and green pepper prices drove higher prices in vegetables, across most areas.

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What can you buy earning the National Minimum Wage

With the National Minimum Wage (NMW) at R23,19 an hour and R185,52 for an 8-hour day, general workers earned R4 081,44 during the 22 working days in August. The cost of a basic nutritional food basket for a family of four people for August is R3 212,97.

In July, municipalities increased the price of prepaid electricity with an average of 7,47%. Taxi fare also increased in August from R2 to R3 and even by as much as R5 per local trip.

The PMBEJD calculated, using Pietermaritzburg-based figures for electricity (7,4% increase) and transport (12,4% increase) that electricity and transport now take up 58,1% of a worker’s wage. They buy food after paying for electricity and transport, leaving them with only R1 709,94 for food and everything else.

Therefore, the PMBEJD calculates that workers’ families underspent on food by a minimum of 46,8% (having a maximum of R1 709,94 left after transport and electricity and with food costing R3 212,97).

Considering that In August the average cost to feed a child a basic nutritious diet was R820,26 and the Child Support Grant of R480 was 23% below the Food Poverty Line of R624 and 41% below the average cost to feed a child a basic nutritious diet (R820,26), it is clear that most South Africans are in a cost-of-living crisis.

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National Minimum Wage puts families below poverty line

The PMBEJD says the NMW is a poverty wage that hurts workers, reduces productivity in the workplace and slows down economic growth. The maximum wage of R4 081,44 in August 2022, when disbursed in a black South African family of 4,4 people is R927,60. This is below the upper-bound poverty line of R1 335 per capita per month.

“Set at such a low level, the NMW works to institutionalise the low baseline wage regime and lock millions of workers into poverty. Small annual increments off such a low base which do not reflect inflation levels as experienced by workers (including not projecting inflation forward for workers in the entire 2022 term), means that workers on the NMW are getting poorer and poorer each year.”

The minimum shortfall on food for a family is 46,8% in August 2022. After securing transport and electricity workers are left with R1 709,94. If all of this money went to food, then, for a family of 4, it would provide R427,49 per person per month. The Food Poverty Line is R624.