No festive cheer as food prices bite
Civil society groups have forecast a grim festive season for most families, especially poorer households, amid skyhigh prices of foods including chicken, eggs, potatoes and onions.
The October 2023 Household Affordability Index, by the Pietermaritzburg Economic Justice and Dignity Group, which tracks food price data from 47 supermarkets and 32 butcheries in several cities, said South African consumers had to fork out R141.81, or 2.8% more for the average cost of the household food basket at R5 297.58 in October, from R5 155.77 in September.
Notable price increases were recorded for potatoes, rising by 40%, and eggs, which rose 19%.
Dick Forslund, from the Alternative Information and Development Centre, said that higher food prices are worrying for those in the middle class and those who are struggling to get by.
“We see that the middle class are finding it difficult for their basic foods because of inflation. How much worse it is for the most vulnerable? The fact is that inflation is even higher for them, as the majority of what money they have is used for food. A report revealed that in 2018 there were 6.2 million children going hungry in South Africa, and in 2023 the report indicates there are now 8 million children going hungry.”
Forslund added that the Covid-19 Social Relief of Distress (SRD) grant was R350 in 2020 and food inflation has gone up every year since then but the grant has not increased.
“In 2020 the grant was R350; its value now with prices going up is about R250. It’s a challenge for the unemployed to put food on the table with this small amount of money.”
Wafaa Abdurahman, national coordinator for Fight Inequality Alliance SA, said families were facing a bleak situation.
“We are looking at chicken and eggs which are not luxury foods and the prices have rocketed. We also noted that there have been big increases in the price of onions and potatoes. It’s difficult to see how families are coping.
They are cutting down on basic necessities just to afford food.”
Professor Bonke Dumisa, an independent economic analyst, said the middle class and the poor were not coping with inflation in South Africa.
“Headline inflation is at 5.4% but food inflation is currently at 8% and has not come below that figure in a long time. The middle class are struggling.
For example the price of 1 kg red meat has increased by 75%. The rich may be able to afford it while the middle class can barely afford it and the poor can’t afford it at all.
“Remember the middle class are affected negatively as they are paying mortgage bonds and school fees and still face high food prices. Many have to downgrade and move from where they are living so they can continue with their lives. They also have to prioritise what is important in terms of wants and needs. We find that they prioritise the education of their children instead of buying certain foods which have become too expensive.”
Evashnee Naidu, the KwaZulu-Natal provincial director of Black Sash, said Black Sash was concerned about how cash-strapped households and those living on grants will survive the coming festive season.
“This comes in the wake of increased food prices, the scarcity and compounded increased costs of basic necessities like chicken and eggs. After listening to the Minister of Finance on November 1, this paints a very bleak future ahead for South Africa, but more so for poor households and many who are living on the fringes of society.”
Naidu added that there should be a basic income grant for the most needy.
“As Black Sash, we would like to amplify our call for a Basic Income Support Grant for all between 18-59 who have little to no income, so that they can meaningfully contribute to their households and uplift the dignity of all our people.”
Dr Kelle Howson, a senior research consultant at the Institute for Economic Justice, said that because of food prices increasing so rapidly, they saw a dramatic increase in the level of the food poverty line set by Stats SA this year.
“This has risen from R663 to R760 per month. Anyone below this level of income cannot meet their basic caloric intake requirements.
“The festive season always adds significant pressure on household budgets.
The government must urgently increase social protection, in order to protect basic socio-economic rights.”
Howson added that the child support grant and SRD grant needed to be increased.
“This needs to be at least R760. The National Treasury has unjustifiably cut funding to the SRD grant for 2024/25, from R36 to R34 billion. With levels of hunger and food poverty increasing, this is a disaster for the millions of people in South Africa who are prevented from accessing income by a lack of available jobs.”
The Mercury