Latest news with #PietermaritzburgEconomicJusticeandDignity
IOL News
07-05-2025
- Business
- IOL News
Soaring food costs squeeze South Africans
The Pietermaritzburg Economic Justice and Dignity (PMBEJD) in its April 2025 Household Affordability Index showed that the price of a basic food basket increased by almost R100 month on month. WHILE the slight drop in fuel prices on Wednesday at midnight offered much-needed relief, many South Africans are still grappling with the still surging cost of living. The price of both 95 and 93 unleaded has fallen by 22 cents per litre. Diesel (0.05% sulphur) dropped by 42 cents a litre, and diesel (0.005% sulphur) has come down by 41 cents per litre. However, for households already struggling with strained finances, the minor reduction was a drop hardly mitigated for rising food and utility costs. According to the April 2025 Household Affordability Index, compiled by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the average cost of the "Household Food Basket" increased by R90.94 (1.7%), from R5 329.36 in March to R5 420.30 in April. This spike in food prices continued to hurt the poor the most, all of which were spin offs from a sluggish economy and political instability. In Durban, the Rise With Us Foundation, which provides weekly meals to the homeless, said it was battling to cope with the rising cost of food. Wendy Maharaj, a representative from the foundation, said this hampered their operations. 'As things stand, we are struggling to provide food for the people who have no one to depend on but us. The cost of living not only affects us, but it also affects all South Africans. Our operations are funded by member contributions and occasional donations, but we've had to fork out over R8,000 recently just to keep going.' Maharaj called on the government to regulate private retailers, warning that unchecked price increases could spiral out of control. 'If they continue to adjust prices as they wish, that will become a big problem to contain in the future. It is already a challenge.' The foundation distributed food to various hotspots in Durban, including the vicinity of the Durban City Hall, where eThekwini Mayor Cyril Xaba and his executive were based. Although the fuel price cut was a welcome development, it comes amid increasing frustration over high electricity and water rates in municipalities like eThekwini. Ish Prahladh, chairperson of the eThekwini Ratepayers and Residents Association (ERRA), said the petrol price decrease does little to ease the broader burden on residents. 'We pay high municipal rates, yet we don't have a consistent water supply. The decrease in petrol prices does not fix the broken systems we have to deal with daily,' said Prahladh. He added: 'It's hard for people to survive in these conditions, especially when the cost of living keeps climbing.' South Africa's high unemployment rate, especially among young people, further worsened the situation. The ongoing debate around minimum wage has also reignited, as more families struggled to make ends meet. Economist Dr. Ntokozo Nzimande from the University of Johannesburg said that while the fuel drop was a step in the right direction, its broader economic impact depends on whether it translates into reduced costs for essential goods. 'In theory, a drop in fuel prices should reduce the cost of transportation and food. 'It also presents an opportunity for the South African Reserve Bank to consider more aggressive interest rate cuts to support economic recovery. But global uncertainties continue to pose inflationary risks, so our focus must be on stimulating growth.' Mervyn Abrahams, programme coordinator at PMBEJD, said while the average food basket now stood at R5 420.30, year-on-year it has increased by R83.99 (1.6%). 'Out of the 44 foods we tracked in the basket, 24 increased in price in April while 20 decreased,' he said. Key food items saw significant price hikes: tomatoes jumped 26%, carrots 20%, onions 11%, and oranges 18%. Other staples such as potatoes, spinach, cabbage, and beef also rose between 6% and 7%. Even essentials like maize meal, full cream milk, and brown bread registered increases of 2% or more," he said. Regional data painted a bleak picture. Durban's food basket cost increased by R157.64 (3%) month-on-month, and by R168.23 (3.2%) year-on-year, reaching R5 425.23 in April. In Johannesburg, the basket rose by R77.58 (1.4%) from March, although it fell slightly year-on-year. Evashnee Naidu, KwaZulu-Natal regional manager for Black Sash, told Business Report that while the lack of a VAT increase in 2025 was positive, it did little to offset the rising cost of food. 'South Africa continues to see food prices increase. We at Black Sash renew our call for permanent Basic Income Support to help vulnerable individuals and families,' she said. WhatsApp your views on this story at 071 485 7995 DAILY NEWS
IOL News
04-05-2025
- Business
- IOL News
South Africa's food prices rise sharply despite easing inflation
This past week, data released by the Pietermaritzburg Economic Justice and Dignity (PMBEJD) in its April 2025 Household Affordability Index showed that the price of a basic food basket increased by almost R100 month on month. While the latest inflation data for South Africa showed an easing, food prices in the country saw a sharp increase. This past week, data released by the Pietermaritzburg Economic Justice and Dignity (PMBEJD) in its April 2025 Household Affordability Index showed that the price of a basic food basket increased by almost R100 month on month. In April, consumers had to fork out R5 420.30 to fill up a basic food basket. That means the average cost of the Household Food Basket increased by R90,94 (1.7%), from R5 329.36 in March 2025 to R5 420.30 in April 2025. The average cost of the Household Food Basket increased by R83.99 (1,6%), from R5 336,31 in April 2024 to R5 420.30 in April 2025. In April, of the 44 foods tracked in the basket, 24 foods increased in price, and 20 foods decreased in price. While consumer priced inflation softened, it was mainly attributed to lower fuel prices, while food prices remained the same or saw an increase. Foods in the basket which increased in price in April 2025 by 5% or more, include: potatoes (6%), onions (11%), beef (7%), fish (7%), tomatoes (26%), carrots (20%), spinach (7%), cabbage (6%), green pepper (7%), bananas (7%), and oranges (18%). Foods in the basket which increased in price in April 2025 by 2% or more, include: maize meal (2%), full cream milk (2%), beef tripe (2%), cremora (3%), apricot jam (4%), and brown bread (2%). Foods in the basket which decreased in price in April 2025, by 5% or more, include: butternut (-7%), and apples (-6%). Foods in the basket which decreased in price in April 2025, by 2% or more, include: rice (-4%), cake flour (-2%), sugar beans (-3%), salt (-2%), frozen chicken portions (-3%), stock cubes (-2%), soup (-3%), tea (-3%), margarine (-2%), and peanut butter (-2%). Gloomy day for workers As the country celebrated workers day this past Thursday, the numbers showed that there was not much to celebrate. The national minimum wage in South Africa is R28.79 per hour, R230.32 for an 8-hour day, and R4 836.72 for an average 21-day working month. In April 2025, with 19 working-days, the maximum National Minimum Wage for a General Worker was R4 376.08. "Workers work to support their families. The wage workers earn is not just to sustain themselves alone, it is used to support the entire family. For Black South African workers, one wage typically must support 4 people. Dispersed in a worker's family of 4 persons, the NMW, is R1 094.02 per person, this is below the upper-bound poverty line of R1 634 per person per month," the PMBEJD stated. The April 2025 average cost of a basic nutritional food basket for a family of four persons is R3 817.78. The group added, "On our calculations, using Pietermaritzburg-based figures for electricity and transport, and the average figure for a minimum nutritional basket of food for a family of four, puts electricity, and transport, taking up 58.6% of a worker's wage (R2 562.97/R4 376.08)." "Food is bought after monies for transport and electricity have been paid for or set aside (leaving R1 813.11 – for food and everything else), and so in April 2025, PMBEJD calculates that workers' families will underspend on food by a minimum of 52,5% (having R1 813.11 left over after transport and electricity have been paid, and with food for the month costing R3 817,78). In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family. If the entire R1 813.11 all went to buy food, then for a family of 4 persons, it would provide R453,28 per person per month. This is below the food poverty line of R796," the PMBEJD further stated. Neil Roets, CEO of Debt Rescue said that the figures reflect a brutal truth, that millions of South Africans are no longer coping. Roets said, "To survive, many are turning to credit cards and payday loans just to buy groceries. We're seeing a sharp rise in consumers using short-term credit to put food on the table.' Hygiene items are also increasingly unaffordable. The cost of basic household hygiene products has risen to R1 033.09, up 2.6% from last year. 'When food and hygiene compete for the same shrinking budget, something has to give—and it's often health and dignity,' Roets added. 'People aren't overspending or living recklessly. They're doing everything right, but the numbers no longer work. They are trapped in a cycle of survival, borrowing just to eat, and falling deeper into debt every month,' he said. 'The April 2025 Household Affordability Index confirms what we see every day: the cost of survival is rising faster than people can keep up. South Africans are at breaking point right now under the combined onslaught of food prices that have increased far above the inflation rate, interest rates that are still among the highest they have been in a decade and the relentless financial onslaught from Eskom for an essential service that is also vital to the survival of households. Where to from here?', Roets asked. BUSINESS REPORT
IOL News
24-04-2025
- Business
- IOL News
Producer inflation cools to 0.5% in March, yet food costs signal price pressures
The PPI index dropped from 1% in February to 0.5% in March. The rate of growth in South Africa's Producer Price Index (PPI) declined on a yearly basis, dropping from 1% in February to 0.5% last month – which bodes well for inflation as this measure is seen as a forerunner of consumer price hikes. However, the latest print from Statistics South Africa showed that food price pressures are in the pipeline. Food prices have been a sticking point for inflation for some time, with the Pietermaritzburg Economic Justice and Dignity's March Household Affordability Index having shown that core staple foods such as maize meal, rice, cake flour, white sugar, sugar beans, samp and cooking oil all increased that month. PPI, which measures changes in the prices of goods and services sold by domestic producers to businesses, follows the Wednesday publication of the March consumer price index, which showed a decline on an annual basis from the 3.2% recorded in February to 2.7% Higher prices of food, beverages, and tobacco adversely affected the PPI figure, Statistics South Africa said on Thursday. The annual percentage change in the PPI for agriculture, forestry and fishing was 2.4% in March 2025, down from 7.6% in February. The main contributor to this rate was agriculture, a sector in which prices gained 2.4%. Wednesday's consumer inflation figure, which was lower than expected, showed no consumer price pressures, Old Mutual chief economist Johann Els said at the time. He explained that food, clothing, shoes, fur, appliances and vehicle inflation were all well contained. Lara Hodes, Investec economist, said on Wednesday that there was no impact on inflation in terms of fuel prices, given that the cost of a litre of petrol only dropped 7c in March. She added that 'a more substantial petrol price decrease was implemented in April, which will contribute to reducing inflationary pressure during that month'. For March, Statistics South Africa noted that electricity and water also recorded yearly gains in the PPI figure, with these utilities up 10%. This is a decline from the 10.2% recorded in February. Electricity accounts for 10.8% of this increase, it said. Several other areas of the PPI measurement showed increases, including mining, which was driven by gold and other metal ores.
Zawya
25-03-2025
- Business
- Zawya
South Africa Budget 2025: Navigating everyday living amid rising VAT and food prices
Following the Finance Minister's recent announcement of a 0.50% increase in Value Added Tax (VAT) in May 2025, followed by another 0.50% in 2026, many consumers are understandably anxious about the impact of these changes. Coupled with rising food, electricity, and fuel prices, this has raised significant concerns about how these factors will affect their budgets and daily living expenses. In the last five years, food prices have risen sharply, exacerbating a national malnutrition crisis. The Pietermaritzburg Economic Justice and Dignity (PMBEJD) Group reports that the average cost of a household food basket reached R5,383.38 in December 2024, up from R3,199.86 in December 2019 — an alarming increase of over 68%, far exceeding the general inflation rate of around 26%. This steep rise in daily costs, combined with stagnant wages, creates immense challenges for South African families. Essential nutrition is often compromised, with staple foods seeing prices soar nearly 60% from R1,303.18 in December 2019 to R2,078.68 in December 2024, significantly impacting low-income households. To cushion vulnerable communities from the impact of these tax measures, the list of VAT zero-rated food items will expand effective 1 May 2025. New additions include edible offal and specific cuts of meat, dairy liquid blends; and tinned or canned vegetables. This initiative aims to alleviate some financial burdens for those in need. Despite the challenges posed by rising costs, consumers can keep grocery shopping stress-free with strategic planning and budgeting. Here are some practical tips to navigating everyday living: 1. Plan and prioritise: Create a detailed shopping list focusing on essential, nutrient-dense items to avoid impulse purchases, and planning weekly meals helps you buy only what you need and can allow you to capitalise on retailer specials and group buying. 3. Consult the VAT Zero-Rate List: Keep the list of zero-rated items handy, as many staples like maize meal, milk, eggs, brown bread, lentils, and cooking oil are included. With more protein items being added, this list is invaluable when making shopping decisions. 4. Utilise group-buying platforms: Platforms like SOLshop allow you to join forces with others to purchase items at wholesale prices. This social-shopping method is perfect for bulk buying, especially essential household groceries. Buying in bulk, especially staples, ensures you can feed your entire family while keeping costs down. The platform offers weekly deals on daily essentials that will help your rands stretch further. 5. Explore alternative shopping options: Smaller local retailers, markets, and street vendors can sometimes offer better deals than major retailers. 6. Focus on nutrient-dense foods: Prioritise purchasing foods that provide the most nutrition for their cost, such as legumes, grains, vegetables, and fruits that are less expensive but still healthy. 7. Homemade options: Preparing items such as Umphokoqo (crumbly pap), uJeqe (steamed bread), muffins, and scones at home can be healthier and more economical than buying convenience foods. 8. Buy seasonal produce: Focus on purchasing fruits and vegetables that are in season, as they tend to be more affordable and fresher. 9. Grocery store loyalty cards: Many retailers now have loyalty cards that offer shoppers discounts. Make sure you sign up to receive the benefits 10 Manage finances with digital wallets: Use a digital wallet like SOLmate to track your grocery and household spending. It offers real-time balance updates and transaction tracking, helping you adhere to your budget effortlessly. It's an ideal way to manage funds and takes the anxiety out of every day financial management. As we navigate an environment of higher inflation and VAT, the key to reducing grocery shopping anxiety lies in careful planning, budget adherence, and exploring cost-saving strategies. With clever budgeting, you can still maintain a healthy diet while saving for unexpected expenses or that treat.
