Basic food basket gets even pricier, will hit poor households hardest

Poor households are again paying more for their food baskets in November due to price increases for almost all nutritious foods.

One small respite, however, is that these increases varied from area to area, with the basket for Pietermaritzburg and Cape Town decreasing slightly after having increased in October.

The food basket survey is done as part of the Household Affordability Index conducted by the Pietermaritzburg Economic Justice and Dignity Group every month. In November, the average cost of the food basket was R4 835.96, with an increase of R48.13 (1%) from R4 787,83 in October and R563,52 (13,2%) more than the R4 272,44 of November 2021.

The index tracks food price data from 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok that target the low-income market.

The food basket is considered a reasonable example of a food basket low-income women identified as including the most important typical foods most households try and buy each month, given affordability constraints. The basket is not nutritionally complete.

Food prices that increased by more than 4% in November compared to October include maize meal (4%), cake flour (4%), samp (7%), onions (8%), chicken feet (5%), beef liver (4%), wors (4%), fish (6%), carrots (5%), apples (10%), oranges (33%) and apricot jam (5%).

Prices differed between areas in November, with the Durban basket (an increase of R155,09) pushing up the price of the national average basket with increases in the major staples from maize meal (up 17%), flour (up 14%), samp (up 13%), cooking oil (up 7%), to dairy, meat, onions (up 15%), spinach and oranges.

The basket for Springbok, like Durban, showed a high number of increases, for flour, sugar, meat, onions, tomatoes, green peppers and white as well as brown bread, while the basket for Johannesburg mostly had price increases on vegetables and fruit.

The Cape Town basket had increases mostly on meat, potatoes, onions, salt, soups and stock, while the prices in the Pietermaritzburg basket were subdued, with few increases that included milk, onions, carrots, green peppers, apples and oranges.

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Food basket prices are unpredictable

“Food prices are notoriously unpredictable and different areas experience their own set of variables that push or pull down prices with food basket increases in Johannesburg, Durban and Springbok,” the group says.

The prices for the basket per area are:

• Johannesburg: the basket increased by R17,99 (0,4%) compared to October and by R576,75 (13,3%) compared to November 2021 to R4 909,87 in November 2022.
• Durban: the basket increased by R155,09 (3,3%) compared to October and by R524,32 (12,2%) compared to November 2021 to R4 829,55 in November 2022.
• Cape Town: the basket decreased by R28,24 (-0,6%) compared to October and by R504,60 (12%) compared to November 2022 to R4 702,34 in November 2022.
• Springbok: the basket increased by R201,41 (4,0%) compared to October and by R734,32 (16,2%) compared to November 2021 to R5 269,19 in November 2022.
• The Pietermaritzburg basket decreased by R27,10 (-0,6%) compared to October and increased by R590,44 (14,4%) compared to November 2021 to R4 676,89 in November 2022.

The food items low-income consumers buy first are also important.

These core foods are prioritised to ensure that families do not go hungry and when the prices of these items increase, it means that there is less money to spend on nutrient-rich food.

Core foods make up 55% of the basket and at R2 655,28 in November, they are relatively very expensive in relation to how much money is available for food.

Core foods include maize meal, rice, cake flour, white sugar, sugar beans, samp, cooking oil, salt, potatoes, onions, frozen chicken portions, curry powder, stock cubes, soups, tea and white and brown bread.

The cost of core foods increased by R23,32 (0,0%) compared to October and with R362,73 compared to November 2021.

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A nutritious diet for children

The average cost to feed a child a basic nutritious diet in November was R838,65, an increase of R13,34 or 1,6% compared to October and an increase of R93,69 or 12,6% compared to November 2021.

The group notes that the Child Support Grant of R480 was 28% below the Food Poverty Line of R663 in November and 43% below the average cost to feed a child a basic nutritious diet that includes meat, eggs and dairy which are critical for protein, iron and calcium, vegetables and fruit which are critical for vitamins, minerals and fibre and maas, peanut butter and pilchards which provide good fats, protein and calcium that is essential for children.

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National Minimum Wage and the food basket

With the National Minimum Wage at R23,19 an hour or R185,52 for an eight-hour day, a general worker would have earned R4 081,44 in November with 22-working days. Compared to the cost of a basic nutritional food basket for a family of four at R3 287,44 in November, it is clear that some items in the food basket had to go.

The group says, calculated by using Pietermaritzburg-based figures for electricity and transport, as well as the average for a minimum nutritional basket of food for a family of four, electricity and transport eats up 58,1% (R2 371,50) of a worker’s wage.

“Low-income consumers only buy food after paying for transport and electricity, which leaves them with only R1 709,94 for food and everything else. Therefore, we calculate that workers’ families will underspend on food by a minimum of 48%,” the group says.

The household basket also excludes hygiene products, which are also expensive, increasing by R156,88 (21,2%) in November to R895,66 compared to November 2022. These products compete in the household purse with food and are essential for good health and hygiene.