Rising food prices widen the affordability gap

Nicola Mawson|Published

Frozen chicken portions rose by R10.12 month-on-month in April.

Image: Freepik

Higher fuel prices are filtering through to the cost of food, with the average basic nutritional food basket for a family of seven people exceeding the national minimum wage by 12.4%.

This comes even as official statistics show that food inflation has been on a downward trend and indicates a minimum underspend of 50% on food this month.

According to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), higher prices for key staples and protein pushed up the average cost of a basket of food in April.

It warned that food price hikes should be carefully monitored for “opportunistic price increases by producers and retailers”.

The group said the average cost of the household food basket increased to R5,452.09 in April when compared with March, up by R123.56, or 2.3%. In contrast, the national minimum wage is R5,890.32, assuming a 45-hour work week.

On a year-on-year basis, the basket rose by R31.79, or 0.6%.

The official data

The increase comes despite signs of easing food inflation in official data. According to Statistics South Africa, the annual rate for food and non-alcoholic beverages slowed to 3.6% in March, from 3.7% in February and 4.4% in January.

Statistics South Africa said several categories are now in deflation, including fruit and nuts, vegetables, cereal products, and milk, dairy products and eggs.

Food items that recorded declines include the milk, dairy and eggs category, which recorded its 10th consecutive month of deflation. Prices for cereal products declined by 1.0% on average, with items such as maize meal, rice, bread and flour all lower than a year earlier, the agency said.

Statistics South Africa also reported that meat prices declined for a second consecutive month, with beef products such as stewing beef, steak and mince all recording price decreases between February and March.

Food inflation and affordability in numbers.

Image: ChatGPT

Essential items

However, the PMBEJD said increases in several essential items are still pushing up the cost of the household basket. According to the group, onions recorded one of the largest increases, rising by R22.43 month-on-month, while tomatoes increased by R13.07.

Protein prices also contributed to the increase. The PMBEJD said frozen chicken portions rose by R10.12 month-on-month and beef increased by R6.12 and fish by R9.73.

The group noted that while some staples such as maize meal declined slightly, increases in other key items such as rice and cooking oil added to overall cost pressures.

Core foods – those prioritised and bought first by households – also became more expensive. According to the PMBEJD, the cost of these foods increased by R56.41, or 2%, month-on-month to R2 873.16 in April. These foods must be bought regardless of price escalations,” the PMBEJD said.

The minimum need

The data also highlights a widening gap between what households spend and what is required for adequate nutrition. The PMBEJD said the cost of a basic nutritional food basket for a family of seven people reached R6,618.99 in April.

This is R1,166.90 higher than the household food basket, indicating that families are underspending on nutrition by at least 18%, according to the group.

“Where the money remaining is short, women have no choice but to drop foods from their trolleys or reduce the volumes of nutritionally rich foods,” the PMBEJD said.

Child nutrition costs are also increasing. According to the PMBEJD, the average cost to feed a child a basic nutritious diet rose to R964.94 per month in April when compared with the Child Support Grant of R580.

In April, the grant was 32% below the food poverty line and 40% below the cost of a basic nutritious diet for a child, according to the PMBEJD.

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