South Africa's Food Basket Price Hits R5,502.42 Amid Rising Unemployment and Inflation

The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) Household Affordability Index food basket for June released on Tuesday reached R5,502.42, an increase of R23.15 (0.4%) from the previous month.

Mervyn Abrahams, Director of the PMBEJD, explained that the average cost of the basket has risen month-on-month, with 24 foods increasing in price and 20 decreasing. Foods that saw a 5% or more price hike include onions, chicken feet, chicken livers, tomatoes, carrots, and green pepper.

Civil society groups, including Black Sash, expressed concern over the rising cost of food, which they say is further exacerbating the financial strain on poorer households. Evashnee Naidu, KwaZulu-Natal regional manager of Black Sash, pointed out that despite other statistics showing a decrease in food inflation, the poorest of the poor are struggling to make ends meet.

Siyanda Baduza, a basic income researcher at the Institute for Economic Justice (IEJ), noted that the increase in the cost of the food basket is a devastating development for households, especially those in poverty. He also pointed out that this comes amidst increasing unemployment and rising fuel prices, pushing the country into a 'cost-of-living crisis'.

Frank Blackmore, Lead Economist at KPMG South Africa, highlighted that despite a 17-month low of 1.6% in June, the average cost of the basic 44-item food basket remains high, with a minimum nutritious food basket for a family of four costing approximately R3,787.

The recent announcement of almost R5 billion in underspent grants for the most vulnerable has been met with criticism, with Baduza arguing that these funds should be used to improve social services, not returned to the Treasury.

[The government needs to put more measures in place to curb this worrying trend.] – Evashnee Naidu, KwaZulu-Natal regional manager of Black Sash.

The PMBEJD Household Affordability Index tracks the prices of 44 basic foods from 52 supermarkets and 36 butcheries. The food basket includes foods such as sugar beans, samp, soup, Maas, canned baked beans, and apples.

The recent regional variations in food basket prices persist, with Mthatha recording the most expensive basket and Cape Town offering the cheapest. The increasing cost of food has far-reaching implications for households struggling to make ends meet.