The latest Household Affordability index indicated decreases in food prices both year on year and month on month
Image: Pezels
April's household affordability index reveals a concerning rise in food prices in South Africa, driven by escalating fuel costs and geopolitical tensions.
The Pietermaritzburg Economic Justice and Dignity Group warns of potential food security and national security crises if trends continue.
It released the April household affordability index, which showed that the April household food basket had increased by R123,56 (2,3%) to R5 452,09.
The food basket report indicated that the rise in food prices was an early impact of increases in fuel prices on local food prices, resulting from the USA and Israel war on Iran.
The affordability index showed that a sharp escalation of prices on basic foods could result in a severe food security crisis.
The report said: “The South African economy runs primarily on diesel fuel as an input. South Africa imports around 70-80% of its fuels: 66-67% of the diesel consumed in South Africa is imported, as a finished product.
“Diesel prices at the pump are not regulated, and may bring in unpredictability and instability for the economy.
“Most of our foods are transported considerable distances from these hubs to supermarkets.
"South Africans buy most of our food from supermarkets. We are ‘just-in-time buyers'. We do not have stores of food in pantries waiting for us to use when we run out of food. We have barely enough food in our homes for a few weeks and then when we get money we go to the supermarket and buy again,” the report stated.
It indicated: “A sharp escalation of prices on basic foods could result in a severe food security crisis; which could quickly spiral into a national security threat – something we have experienced during the July 2021 unrest.
“Given South Africa’s structural vulnerabilities, and with our April household food price data suggesting an early impact of higher fuel costs and electricity on the prices of foods on our supermarket shelves, we advise that cautionary steps continue, and that the situation be monitored carefully, including opportunistic price increases by producers and retailers; with additional plans put into place to mitigate potential risks to South Africa’s food availability, access and affordability, and national security.”
Foods in the basket which increased in price in April included onions (23%), fish (8%), tomatoes (10%), carrots (5%), rice (4%), sugar beans (4%) and cooking oil (2%).