The food basket outcomes for July doesn’t bode nicely for the nation’s poor and hungry, with the basket costing R611.44 greater than in July final 12 months and R60.06 greater than in June this 12 months.
This signifies that low-income customers have to chop nutritious food from their purchasing lists to additionally afford transport and electrical energy.
According to the July 2022 Household Affordability Index survey run by the Pietermaritzburg Economic Justice and Dignity group, the common price of the basket was R4,748.87 in July. In June it was R4,688.81 and in July final 12 months R4,137.43.
The index tracks food worth information from 44 supermarkets and 30 butcheries, in low-income communities in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok. It contains the meals and the volumes that ladies dwelling in a household of seven members (a median low-income family dimension) says they usually try to safe every month.
Although the worth of the common basket continues to extend, the PMBEJD says information over the previous three months is starting to indicate a moderation in prices. “This month, although still increasing by 1.3%, the higher increase for the basket was driven by a spike in the Cape Town basket which increased by R157.41, driving the monthly increase on the average basket up by approximately R20.”
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Commodity prices stabilising
The group says indications are that world commodity prices of grains and oilseeds, in addition to crude oil, are stabilising which signifies that imported inflation is more likely to be decrease and this could begin filtering via.
“Lower fuel prices are also on the cards for next month, but while we may start to see food prices stabilising, it is not clear when these prices will begin to fall.”
The unhappy factor is that any moderation in food prices won’t imply low-income customers may have more cash of their pockets as July and August will see will increase in taxi fares and better electrical energy tariffs. The PMBEJD says pressures will due to this fact stay on households’ capability to afford their fundamental expenditure for the close to future.
Food basket prices elevated in Johannesburg by R22.33 in comparison with June, Durban by R69.10 and Cape Town by R157.41. The worth decreased in Springbok by R127.32 and by R37.58 in Pietermaritzburg in comparison with June this 12 months.
A complete of 31 of the 44 meals in the whole basket elevated in worth, with fairly erratic worth fluctuations this month of particular person meals in the basket throughout areas. “Generally, the trend was that the major staple foods, maize meal, rice, samp, flour, sugar and potatoes, saw increases. Cooking oil prices are stabilising in all areas except Johannesburg, which saw a further 5% increase,” the PMBEJD says.
Vegetables had been additionally costlier in July, with tomatoes, carrots, butternut, spinach and inexperienced peppers costing extra, whereas the worth of cabbage decreased. Bananas and apples had been additionally costlier, whereas oranges price much less.
Bread prices had been down besides for a steep soar of 5% in Cape Town. All meat prices additionally got here down, besides beef which elevated marginally (by 1%), frozen rooster parts that elevated marginally in all areas, besides Durban and Springbok, the place they got here down by 6% and pushed the common all the way down to -2% and fish, which elevated by 7%.
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Sharp spike in Cape Town prices
The PMBEJD says the basket prices in Cape Town, which have a tendency to extend at a lot gentler ranges than different areas, noticed a a lot steeper hike in prices and throughout extra meals in the basket, in comparison with different areas.
The group additionally factors out that the worth of the Durban basket is constantly excessive. “Monthly increases are typically in the region of R60 to R100. The escalation of the Durban basket over the past year is still partly driven by the consequences of the July 2021 unrest, where residents still have to buy their groceries in more expensive supermarkets, further from where they live.”
The logistic obstacles in the food worth chains, persevering with from final 12 months’s unrest, in addition to the extra present transport issues of street blockages/protests/ongoing street upkeep and site visitors disruptions on the main Johannesburg to Durban freeway routes, together with nonetheless coping with the current flooding, additionally influences the food prices in the area.
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More costly transport and electrical energy
In addition, municipalities elevated the worth of pay as you go electrical energy in July, on common by 7.47%. In Pietermaritzburg, 350kWh of pay as you go electrical energy price R56 extra, up from R731.50 to R787.50 (from R2.09/kWh to R2.25/kWh).
“Transport fare increases are porous, with some already into effect and some yet to increase next month. General fare price increases, where they have been implemented, are up R2 to R3 and R5 per local trip. Fare increases hurt the pockets of workers and must be absorbed as people have to get to work.”
The group says employees nonetheless stay in the locations the place apartheid left them distant from work and little has modified concerning apartheid geography. Taxi fares eat an infinite gap in employees pockets.
“In July 2022, with 21 working days, the maximum national minimum wage for a general worker is R3,895.92. On our calculations, using Pietermaritzburg-based figures and the national figure for a minimum nutritional basket of food for a family of four (in July this was R3,229.49), puts electricity (the 7.47% increase) and transport (increase not yet effected in Pietermaritzburg), as taking up as much as half a worker’s wage (54.7% or R2,131.50).”
The group factors out that low-income customers solely purchase food after paying for transport and electrical energy, leaving solely R1,764.42 for food and all the things else and due to this fact the PMBEJD calculates that employees’ households underspent by a minimal of 45.4% on food in July.
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Little nutritious food for youngsters
It now prices R100 extra to feed a baby a fundamental nutritious weight-reduction plan than it did a 12 months in the past. In July 2022, the common price to feed a baby a fundamental nutritious weight-reduction plan was R824.14. In July 2022, the little one help grant of R480 was 23% under the food poverty line of R624 and 42% under the common price to feed a baby a fundamental nutritious weight-reduction plan (R824.14).
“We are starting to get into dangerous territory. Given what we face now, particularly knowing that the child support grant is set below the food poverty line, it would be prudent for government to review the annual increment of R20 and raise it so that mothers are able to better absorb the food price shocks and feed their children properly,” the PMBEJD says.
