Food Price Hikes Worsen Struggles of Low-Income Consumers

The cost of basic food items continues to rise, placing an additional burden on low-income households. The current average cost of a basic food basket for a family of four is R5,071.59, surpassing the earnings of a minimum wage worker who takes home R4,473.92. Consequently, low-income consumers are forced to sacrifice nutritious food items in their grocery shopping as they struggle to afford transportation and electricity, two other major expenses in their lives.

May 2023 Household Affordability Index:
According to the May 2023 Household Affordability Index, which tracks food price data from various locations in South Africa, the average cost of the Household Food Basket increased by R47.64 (0.9%) from April 2023 to May 2023, reaching R5,071.59. Compared to May 2022, there has been a significant increase of R461.70 (10.0%) in the average cost of the basket.

Food Price Fluctuations:
In May, certain food items experienced notable price increases. Onions (12%), stock cubes (5%), carrots (12%), butternut (14%), and bananas (5%) were among the items that saw a price hike. Additionally, there were slight price increases in maize meal (3%), salt (4%), curry powder (3%), soup (3%), tea (3%), full cream milk (3%), eggs (3%), chicken feet (2%), chicken livers (4%), spinach (4%), peanut butter (3%), and polony (2%).

Regional Variations:
In May 2023, low-income consumers in Cape Town and Pietermaritzburg paid less for their food baskets compared to April. However, consumers in Johannesburg, Durban, Springbok, and Mtubatuba were not as fortunate. The Johannesburg basket increased by R43.80 (0.9%) compared to April and by R438.36 (9.5%) compared to May 2023. Similarly, the Durban basket saw a monthly increase of R159.92 (3.3%) and an annual increase of R330.99 (7.0%). On the other hand, the Cape Town basket decreased by R64.85 (-1.3%) compared to April but rose by R580.48 (13.1%) compared to May last year.

Impact on Minimum Wage Earners:
These escalating food prices pose a significant challenge for workers earning the National Minimum Wage of R25.42 per hour or R203.36 for an 8-hour shift. With 22 working days in May, a general worker’s monthly income amounted to R4,473.92. Considering that this income must support an entire family, typically four people for black workers, the amount available per person is only R1,118.48. This falls well below the upper-bound poverty line of R1,417 per person per month.

Struggles to Afford Nutritious Food:
Based on the Pietermaritzburg Economic Justice and Dignity Group’s calculations, low-income families underspent on food by at least 40.5%. After allocating funds for transportation and electricity, workers’ families were left with only R2,102.42 for food and other expenses. Consequently, there is no possibility for workers to afford enough nutritious food for their families. Even if the entire amount was spent on food for a family of four, each person would only have R525.60, falling below the food poverty line of R663.

Impact on Children’s Nutrition:
The average cost of providing a basic nutritious diet for a child in May was R901.19, a 1.0% increase

from April and a 12.2% increase from May last year. This cost is significantly higher than the R500 child support grant, which falls 25% below the Food Poverty Line of R663 and 45% below the average cost of a nutritious diet for a child. To prioritize meals and cooking, low-income consumers tend to purchase core food items first, leaving limited resources for other nutritionally rich foods critical for child development.

Conclusion:
Rising food prices, particularly for core staple foods, place a heavy burden on low-income households. The inability to afford nutritious food has negative consequences for overall household health, well-being, and child development. As prices continue to escalate, low-income consumers are forced to compromise on essential nutritional items, further exacerbating the challenges they face.

Source: Lifestyle | Business News
Rewritten.