No relief at the till for low-income consumers

There was still no relief for low-income consumers at the till according to key data from the November Household Affordability Index food basket, primarily thanks to chicken products, tomatoes, apples and oranges costing 5% more than in October.

The Household Affordability Index tracks food price data from 47 supermarkets and 32 butcheries in areas in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba and Springbok where low-income consumers shop. The index is compiled by the Pietermaritzburg Economic Justice and Dignity Group.

In November the average cost of the Household Food Basket was R5 314,63, R17,05 (0.3%) more than in October, when it cost R5 297,58 and R478,67 (9.9%) more than in November 2022, when it cost R4 835,96.

The price of eggs increased by 18% for two trays of eggs (60 eggs), which means consumers paid R29,73 more when they paid R191,83. Other price increases were recorded for chicken livers (5%), tomatoes (20%), apples (10%) and oranges (31%).

Price increases below 5% were noted for sugar beans (4%), frozen chicken portions (4%), stock cubes (4%), amasi (2%), chicken feet (3%), beef (2%), cabbage (2%), tinned pilchards (3%) and bananas (2%).

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Some food basket prices decreased, but low-income consumers still battle

The group noted that some prices also decreased – a big price drop for onions of 24% or R32,82, with a 10kg bag costing R106,53 and another for potatoes, which cost 11% or R15,29 less in November compared to October, with a 10kg bag costing R130,02.

Unfortunately, the price of rice, also a staple food for low-income consumers, appearing to stabilise on a high base. The group says it also started to see some upward movement in the price of frozen chicken portions in Durban, Cape Town and Pietermaritzburg.

According to Statistics SA’s latest Consumer Price Index for October 2023, headline inflation was 5.9% and for the three lowest expenditure quintiles it is 8.9%, 8.2% and 7.1% respectively. Food inflation was 8.8%.

The price of the food basket increased in November in Durban, Springbok and Pietermaritzburg, while the price decreased in Johannesburg, Cape Town and Mtubatuba.

• In Johannesburg, the price of the basket decreased by R98,60 (-1.8%) compared to October, but increased by R500,62 (10.2%) compared to a year ago.
• In Durban, the price of the basket increased by R92,08 (1.8%) compared to October and also increased by R440,15 (9.1%) compared to a year ago.
• In Cape Town, the price of the basket decreased by R14,27 (-0.3%) compared to October, but increased by R546,06 (11.6%) compared to a year ago.
• In Springbok, the price of the basket increased by R115,93 (2.1%) compared to October and also increased by R482,35 (9.2%) compared to a year ago.
• In Pietermaritzburg, the price of the basket increased by R115,53 (2.3%) compared to October and also increased by R388,45 (8.3%) compared to a year ago.
• In Mtubatuba, the price of the basket decreased by R121,34 (-2.2%) compared to October, but increased by R473,50 (9.7%) compared to a year ago.

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Even if you have work, you cannot afford food as a low-income consumer

Workers who earn the National Minimum Wage (NMW) get R25,42 an hour and R203.36 for an 8-hour day. In November, with 22-working days, the maximum NMW for a general worker is R4 473,92.  For black South African workers, one wage typically supports 3.9 people. Dispersed in a worker’s family of four, the NMW is reduced to R1 118,48 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 59.6% R2 666,92) of a worker’s wage of R4 473,92.

They only buy food after paying for transport and electricity, leaving only R1 807,00 for food and everything else. Therefore, for November, the group calculates that workers’ families will underspend on food by a minimum of 51.3%.

It is clear that it was impossible for a worker to afford enough nutritious food for her family. Even if she spends the entire R1 807,00 on food for a family of four, there will only be R451,75 per person per month, far below the food poverty line of R760.

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The impact of taxi fares increasing in November

The group also points out that taxi fares were increased in all areas tracked in November as part of the annual increases. Local fares generally increased by R2 to R3 and this annual hike moves the proportion of the NMW spent on transport from 35.4% to 39.3%.

In Pietermaritzburg local fares increased by R2, from R18 to R20. Workers typically take two taxis return to work and back from township to local CBD hub and then from the CBD hub to the place of work, now amounting to R80 per day.

In a 22-day month, transport now costs R1 760, taking up 39.3% of the NMW of R4 473,92. The group says apartheid geography, largely unchanged, means that workers still live far from their places of work and therefore spend a very large portion of their wages just to get to work and back.

This also has negative implications for women and children. In November the average cost to feed a child a basic nutritious diet was R946,98. Over the past month, the average cost to feed a child a basic nutritious diet increased by R14,25 (1.5%) and by R108,34 (12.9%) compared to a year ago.

The Child Support Grant of R510 is 33% below the Food Poverty Line of R760 and 46% below the average cost to feed a child a basic nutritious diet. The sad reality is, therefore, that women simply cannot afford to feed their children a proper nutritious diet.