Food Price Surge Hits Lower Income Consumers the Hardest

Key data from the November Household Affordability Index food basket revealed no relief for low-income consumers at the checkout.

Chicken products, tomatoes, apples, and oranges were particularly burdensome, with prices rising by 5% compared to October.

The Household Affordability Index monitors food prices across 47 supermarkets and 32 butcheries in various regions, including Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba, and Springbok—locations frequented by low-income consumers.

Compiled by the Pietermaritzburg Economic Justice and Dignity Group, the index indicates that in November, the average cost of the Household Food Basket was R5,314.63, a 0.3% increase from October and a significant 9.9% surge from November 2022.

Egg prices spiked by 18%, resulting in consumers paying R29.73 more for two trays (60 eggs), totaling R191.83. Additionally, chicken livers (5%), tomatoes (20%), apples (10%), and oranges (31%) all experienced notable price hikes.

While some items, like onions (24% decrease) and potatoes (11% decrease), saw reductions, staple foods like rice remained high. The Pietermaritzburg group highlighted concerns about the upward movement in frozen chicken portions’ prices in Durban, Cape Town, and Pietermaritzburg.

The latest Consumer Price Index from Statistics SA for October 2023 reported headline inflation at 5.9%, with food inflation at 8.8%. The Household Food Basket prices increased in some areas (Durban, Springbok, and Pietermaritzburg) and decreased in others (Johannesburg, Cape Town, and Mtubatuba).

The struggles of low-income consumers are emphasized by the impact on workers earning the National Minimum Wage (NMW), set at R25.42 per hour. With 22 working days in November, the maximum NMW for a general worker was R4,473.92. However, considering family support for 3.9 people, the NMW drops significantly below the poverty line.

Transport costs, exacerbated by annual taxi fare increases, also play a role in financial strain. The group calculates that 59.6% of a worker’s wage is allocated to electricity and transport, leaving only R1,807.00 for food and other expenses. Even if the entire amount is spent on food, the underspend on nutrition is estimated at a minimum of 51.3%.

The challenge is further magnified by the increased taxi fares, negatively impacting women and children.

The average cost to feed a child a basic nutritious diet rose by 1.5% in the past month and 12.9% compared to a year ago. The Child Support Grant of R510 falls significantly below the Food Poverty Line, making it challenging for women to afford proper nutrition for their children.

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