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The household food basket increased by 10% in a year, cutting the budget for nutritious food for poor children even before the increases in fuel and food prices due to the war in Ukraine hit. The food basket for March already shows significant increases in the prices of cake flour, cooking oil, eggs, tea and bread as well as maize meal, rice and white sugar.
This means that child food poverty, under-nutrition, stunting, poor cognitive and physical growth, illness and poor health, inability to concentrate, struggles to function and adjust in society, will all get much worse.
According to key data from the March 2022 Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group, that tracks price data from 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok, the average cost of the food basket was R4,450.09 in March.
This is an increase of R94.39 (2.2%) from R4,355.70 in February 2022 to R4,450.09 in March 2022. The average cost of the food basket also increased by R410.53 (10.2%), from R4,039.56 in March 2021 to R4, 450.09 in March 2022, while the prices of 33 of the 44 products also increased in all the areas.
The Johannesburg basket increased by R86.64 compared to February, by R16.22 in Durban, by R151.38 in Cape Town, by R163.87 in Springbok and R51.95 in Pietermaritzburg. Women from low-income households conduct the price survey where they shop.
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Over the past year, these price increases were noted:
However, this is not the end of price increases. The group says the surge in the price of brent crude oil, an input in everything from the farm to the plate, including the higher cost of imported wheat, sunflower oil and other foods and agricultural inputs will drive prices up as the war continues.
The group tracks prices in the first week of the month and since then the conflict in the Ukraine has escalated.
“The outlook for food prices specifically related to the higher brent crude oil price and wheat, as well as other grains, cereals, legumes and oil combined with the higher fuel and electricity tariffs, is likely to be very severe for South Africa.”
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The increase in the National Minimum Wage (NMW) in March of R1.50 per hour (from R21.69 to R23.19 an hour), R12 a day and R264 per month based on a 22-day working month will not help low-income consumers afford more nutritious food and the group says it is unlikely to ease the suffering of workers considering the difficulties still coming this year, but probably deepen it.
The maximum NMG for a general worker is now R4,081.44. Transport to work and back will cost a worker an average of R1,408. Add to that electricity at an average of R731.50 and a basket of basic but nutritious food at R3,092.25. Together these three core expenses come to R5,231.75.
Low-income consumers first pay for transport and electricity before they even think about buying food and according to the group’s calculations workers’ families will underspend on food by a minimum of 37.2% this month after the increase in the NMW and before the impact of much higher fuel prices, food prices and new electricity tariffs come crashing down on them.
“Government has provided a buffer of R1.50 extra an hour for the millions of South African workers who use their wage to provide not only for their own families but the millions of unemployed people. It will take but a short time for this buffer to be eviscerated.”
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The group’s survey found that the average cost to feed a child a basic nutritious diet was R787.99 in March, an increase of R65 or 9% compared to March last year. With the Child Support Grant of R460 pegged at 26% below the Food Poverty Line of R624 and 42% below the average cost to feed a child a basic nutritious diet of R787.99, it is clear that the children of this country are in trouble.
Government only increased the Child Support Grant by R20 from April, an increase of 4.3%. The cost of feeding a child a nutritious diet increased by R16.04 compared to February. When the R20 grant increase is implemented in April, it will move the grant of R480 from 26% below the Food Poverty Line of R624, to 23% below the Food Poverty Line.
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