Household food basket price decreases, but still too high

The price of the household food basket decreased slightly in February but is still too high when compared to how much money low-income consumers have to spend on food.

In February, the average cost of the household food basket, which provides for a family of four people, was R5 277,30, costing R47,56 (-0.9%) less than in January, but R348,96 (7.1%) more than in February 2023.

The household food basket survey is conducted for the Pietermaritzburg Economic Justice and Dignity Group by women who live in low-income communities where they shop for food at 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba in northern KwaZulu-Natal and Springbok in the Northern Cape.

Mervyn Abrahams, programme coordinator for the group, says the decease is relatively consistent with historical data, where February prices are lower than in January, but usually prices increase again in March.

“We started to see a slight downward trend in food prices since October, with January 2024 presenting a blip, although it is in line with past trends. Food price fluctuations are unpredictable and we do not yet know whether the downward trajectory will continue into the new year, or if prices are set to rise in the coming months in line with previous years.”

ALSO READ: Low-income consumers still paying more for food – household food basket

Food inflation expected to be more subdued this year

However, he says the group believes that food inflation may be more subdued this year compared to the past two years, although it will remain high.

Abrahams also points out that for women trying to secure food for their families it is not necessarily the price fluctuations on individual food items that present a problem, but rather the total cost of the household basket relative to income levels.

“Here the total cost of the household basket relative to income levels is still too high. It causes a household affordability crisis for families because the household purse has to cover a myriad of different expenses and food is just one of them.

“it is also important to remember that this expense is most likely within a woman’s control as she buys the food and this tends to be compromised in an attempt to hold the family together by securing other critical expenses for household functioning.”

He warns that women are forced to sacrifice nutrition and primarily their own and to a lesser degree and with excruciating pain, also their children’s, as they play an impossible game to make ends meet.

“Unless the Rand-value cost of the household food basket comes down substantially, or if income levels rise significantly, women will struggle to feed their families at a minimal level of nutrition this year.”

ALSO READ: Inflation increases again in January

Low-income families are paying less, but this is not enough

While the prices of most of the food items decreased in February compared to January, with the prices of 29 decreasing, one showing no change and 14 increasing, Abrahams cautions that this does not yet signal lower prices in the future.

“The decreases are still coming off a high base and we are yet to see significant drops in prices which would ease the affordability crisis in the trolley. Women are still under enormous pressure to ensure that basic foods are on their family plates and that small amounts of nutritious food are available for their children.”

He says the women who do the survey tells the group that they did not have a good start to the year as the prices of food and other critical goods and services are still extremely high compared to income levels and they have to take on higher levels of debt to try to close some gaps. Paying these debts will put even greater pressure on the little money coming in.

Abrahams, therefore, says that 2024 is likely still to be another difficult year for low-income families.

ALSO READ: Slight drop in food basket price, but no relief for low-income consumers

Items in the food basket that cost less or more

Food items in the basket that increased by 2% or more in February include sugar beans (4%), beef liver (2%), wors (2%), carrots (2%), spinach (11%), Cremora (2%), and oranges (77%).

Food items in the basket that decreased in price by 5% or more in February include: potatoes (-5%), stock cubes (-7%), soup (-5%), eggs (-8%), chicken feet (-6%), chicken livers (-7%), beef (-5%), tomatoes (-9%), butternut (-12%), green pepper (-20%), bananas (-14%) and apples (-9%).

Food items that cost between 2% and 5% less in February include maize meal (-2%), rice (-2%), cooking oil (-2%), salt (-3%), frozen chicken portions (-2%), curry powder (-2%), tea (-2%), inyama yangaphakathi (-3%), fish (-3%), cabbage (-3%), polony (-3%) and brown bread (-2%).

In February 2024, the food basket cost less in all the areas where the survey is done:

• The Johannesburg basket cost R4.24 (-0.1%) less than in January, but R434.12 (8.8%) more than a year ago.
• The Durban basket cost R99.43 (-1.9%) less than in January, but R294.35 more than a year ago.
• The Cape Town basket cost R106.17 (-2.0%) less than in January, but R168.60 (3.4%) more than a year ago.
• The Springbok basket cost R46.66 (-0.8%) less than in January, but R518.28 (10.3%) more than a year ago.
• The Pietermaritzburg basket cost R114.73 (-2.2%) less than in January, but R372.28 (7.8%) more than a year ago.
• The Mtubatuba basket cost R79.27 (-1.4%) less than in January, but R253.04 (4.9%) more than a year ago.

ALSO READ: National minimum wage: Can you survive on less than R5k per month?

Food prices and low wages see less food on family plates

Workers earning the national minimum wage of R25.42 an hour, will earn only R4 270.56 in February with its 21 working days. Dispersed in a worker’s family of four, it is reduced to R1 067.64 per person, far below the upper-bound poverty line of R1 558 per person per month.

Using Pietermaritzburg-based figures for electricity and transport and the average figure for a minimum nutritional basket of food for a family of four, the group calculates that electricity and transport take up R2 586.92 (60.6%) of a worker’s wage.

They only buy food after paying for transport and electricity, leaving only R1 683.64 for food and everything else. Therefore, the group calculates that workers’ families will underspend on food by a minimum of 54.3% making it impossible for a worker to afford enough nutritious food for her family.

In February, the average cost to feed a child a basic nutritious diet was R938.25, R15.51 less than in January but R74.19 or 8.6% more than a year ago. With the Child Support Grant at R510, this is 33% below the Food Poverty Line of R760 and 46% below the average cost to feed a child a basic nutritious diet.