Household food basket prices for low-income consumers slightly lower in May

The average prices for the household food basket for low-income consumers were slightly lower in May, although the basket still cost substantially more than a year ago.

Butternut, fish and tea prices increased by more than 5% in May.

The household basket is part of the Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group based on prices collected by women in low-income communities at 47 supermarkets and 32 butcheries where they shop.

The survey conducted at supermarkets and butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba and Springbok (in the Northern Cape), shows that in May the average cost of the Household Food Basket was R5 330.30, a decrease of R6.01 From R5 336.31 in April, but R258.70 more expensive than in May 2023 when it cost R5 071.59.

Mervyn Abrahams, programme coordinator for the group, says the data is starting to show an easing in the annual rate of inflation on the household food basket of 5.1%.

“However, while the rate of inflation is coming down it is important to note that inflation on food is still 5.1% higher now than it was a year ago.”

In addition, he says, the Rand-value cost of the basket is still very high compared to the low baseline wage of the National Minimum wage that stood at R4 633.44 this month.

“It means that while the overall inflation is coming down, the majority of South Africans, earning low wages, still face a severe affordability crisis, meaning that they are unable to buy the proper nutritious food their families require.”

ALSO READ: Food prices for low-income consumers increasing again

Increases and decreases in prices in household food basket

The prices of 22 foods increased in price in May while 22 decreased in price. Foods in the basket which increased in price in May 2024 by 5% or more, include tea (5%), fish (6%), and butternut (9%). While the prices of maize meal (3%), white sugar (2%), salt (4%), maas (2%), chicken gizzards (3%), beef liver (2%), tomatoes (2%), cabbage (2%), Cremora (4%), canned beans (3%), apples (2%) and peanut butter (2%) increased by more than 2%.

However, some prices also decreased by more than 5%. These are green peppers (-12%), bananas (-7%) and oranges (-14%). While the prices of onions (-3%), soup (-2%), chicken feet (-2%), wors (-3%), beef tripe (-2%), margarine (-2%), apricot jam (-3%) and brown bread (-3%) decreased by more than 2%.

Statistics South Africa’s latest Consumer Price Index for April 2024 shows that headline inflation was 5.2%, and 6.1% for the lowest expenditure quintiles 1-3 it is 6.1%, 5.6% and 5.2%, respectively. CPI food inflation was 4.4% (for CPI food and non-alcoholic beverages it was 4.7%.

The average price of the household food basket decreased in some areas, while it increased in others. In May the household food basket price increased in Durban (+R83.79) and Mtubatuba (+R86.35).

The price of the household food basket decreased in Johannesburg (-R18.50), Cape Town (+R56.76), Springbok (-R144.68) and Pietermaritzburg (-R66.53).

On an annual basis, the price of the Johannesburg basket increased by R528.42, for Durban by R300.20, for Cape Town by R105.00, for Springbok by R86.02, for Pietermaritzburg by R51.80 and Mtubatuba by R86.35.

ALSO READ: Food prices for low-income consumers stable, but still too high

A nutritious diet for a child is not affordable

In May, the average cost to feed a child a basic nutritious diet was R954.58, with a decrease of R4.80, but R53.39 more than a year ago.

In May, the Child Support Grant of R530 was 30% below the Food Poverty Line of R760 and 45% below the average cost to feed a child a basic nutritious diet (R954.58).

The National Minimum Wage NMW) was R27.58 an hour and R220.64 for an 8-hour day. In May 2024, with 21 working days, the maximum National Minimum Wage for a general worker was R4 633.44.

Abrahams says the wage workers earn is not just to sustain themselves alone but to support the entire family. “For black South African workers, one wage typically supports four people. Dispersed in a worker’s family of four, the NMW is R1 158.36 per person, far below the upper-bound poverty line of R1 558 per person per month.

ALSO READ: Food prices stabilising, but still threaten food security

Nutritious food for a family of four too expensive

The average cost of a basic nutritional food basket for a family of four persons was R3 745.15. 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 (55.8%) of a worker’s wage of R4 633,44.

Abrahams points out that the workers only buy food after paying for transport and electricity, leaving R2 046.52 for food and everything else. “Therefore, in May 2024, we calculate that workers’ families will underspend on food by a minimum of 45,4%, having R2 046.52 left over after transport and electricity., and with food costing R3 745,15.”

In this scenario, he says, there is no possibility of a worker being able to afford enough nutritious food for her family. If the entire R2 046.52 all went to buy food, then for a family of four, there will be R511.63 per person per month, again far below the food poverty line of R760.