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IOL News
2 days ago
- Business
- IOL News
Food inflation hits hard: Household budgets feel the pinch as food prices jump
The May 2025 Pietermaritzburg Economic Justice & Dignity's Household Affordability Index reports a notable increase in the average cost of basic food items. Image: Tracey Adams/Independent Newspapers The May 2025 Pietermaritzburg Economic Justice & Dignity's Household Affordability Index reports a notable increase in the average cost of basic food items. Tracking prices of 44 food staples across 47 supermarkets and 32 butcheries in several cities, the Index reveals that the average Household Food Basket now costs R5,466.59, marking a R46.29 (0.9%) jump from April 2025 and a R136.29 (2.6%) rise from May 2024. Food inflation continues to be a critical concern as the Index indicates that of the 44 foods monitored, a staggering 33 items saw a price increase in May. Price escalations were particularly pronounced among essential staples, with onions surging by 23%, butternut rising by 9%, and carrots increasing by 8%. In contrast, only 11 foods registered a decrease in price, with rice witnessing a reduction of 5% and tomatoes dropping by 9%. The trend of rising food prices varies across different regions of South Africa. The Johannesburg food basket increased by R51.00 (0.9%) month-on-month, reaching R5,610.46. Meanwhile, Cape Town experienced the sharpest increase, with prices soaring by R112.62 (2.1%) from April to May. In stark contrast, the Springbok region saw a small decline of R28.90 (-0.5%) month-on-month, although its food prices remain 5.4% higher year-on-year. Statistics South Africa reveals that headline inflation for April 2025 stood at 2.8%, while food inflation reached a higher 3.3%. For households relying on the National Minimum Wage, which stands at R4,836.72 monthly, the financial struggle is becoming increasingly palpable. With the average cost for a basic nutritional food basket for a family of four estimated at R3,843.40, workers face a dire situation where essentials consume a majority of their income. The findings from this Month's Index further elucidate this concern. With transport and electricity alone taking up 56.3% of a worker's wage, families are left with only R2,113.75 to allocate for all remaining expenses, including food. Even allocating this amount entirely to food would provide a mere R528.44 per person per month—falling short of the food poverty line of R796. The implications for children are particularly troubling. The average cost to provide a child with a basic nutritious diet is now R979.66, while the Child Support Grant of R560 is significantly below the food poverty line, rendering it inadequate for meeting basic nutritional needs. The escalating costs emphasize the urgent need for policy responses to address food insecurity and support the most vulnerable sectors of society. Additionally, while the overall cost of household domestic and personal hygiene products saw a slight decrease of R3.58 (-0.3%) in May, the year-on-year increase underscores that these essential products continue to strain household budgets, further intensifying the financial burden on families. Cape Argus
IOL News
2 days ago
- Business
- IOL News
Household budgets feel the pinch as food prices jump in May 2025
The May 2025 Pietermaritzburg Economic Justice & Dignity's Household Affordability Index reports a notable increase in the average cost of basic food items. Image: Tracey Adams/Independent Newspapers The May 2025 Pietermaritzburg Economic Justice & Dignity's Household Affordability Index reports a notable increase in the average cost of basic food items. Tracking prices of 44 food staples across 47 supermarkets and 32 butcheries in several cities, the Index reveals that the average Household Food Basket now costs R5,466.59, marking a R46.29 (0.9%) jump from April 2025 and a R136.29 (2.6%) rise from May 2024. Food inflation continues to be a critical concern as the Index indicates that of the 44 foods monitored, a staggering 33 items saw a price increase in May. Price escalations were particularly pronounced among essential staples, with onions surging by 23%, butternut rising by 9%, and carrots increasing by 8%. In contrast, only 11 foods registered a decrease in price, with rice witnessing a reduction of 5% and tomatoes dropping by 9%. The trend of rising food prices varies across different regions of South Africa. The Johannesburg food basket increased by R51.00 (0.9%) month-on-month, reaching R5,610.46. Meanwhile, Cape Town experienced the sharpest increase, with prices soaring by R112.62 (2.1%) from April to May. In stark contrast, the Springbok region saw a small decline of R28.90 (-0.5%) month-on-month, although its food prices remain 5.4% higher year-on-year. Statistics South Africa reveals that headline inflation for April 2025 stood at 2.8%, while food inflation reached a higher 3.3%. For households relying on the National Minimum Wage, which stands at R4,836.72 monthly, the financial struggle is becoming increasingly palpable. With the average cost for a basic nutritional food basket for a family of four estimated at R3,843.40, workers face a dire situation where essentials consume a majority of their income. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The findings from this Month's Index further elucidate this concern. With transport and electricity alone taking up 56.3% of a worker's wage, families are left with only R2,113.75 to allocate for all remaining expenses, including food. Even allocating this amount entirely to food would provide a mere R528.44 per person per month—falling short of the food poverty line of R796. The implications for children are particularly troubling. The average cost to provide a child with a basic nutritious diet is now R979.66, while the Child Support Grant of R560 is significantly below the food poverty line, rendering it inadequate for meeting basic nutritional needs. The escalating costs emphasize the urgent need for policy responses to address food insecurity and support the most vulnerable sectors of society. Additionally, while the overall cost of household domestic and personal hygiene products saw a slight decrease of R3.58 (-0.3%) in May, the year-on-year increase underscores that these essential products continue to strain household budgets, further intensifying the financial burden on families. IOL
The Citizen
5 days ago
- Business
- The Citizen
Household food basket shows food prices still increasing
While interest rates and fuel prices, as well as inflation, are lower, the picture for low-income consumers has not changed. The price of the household food basket for May shows that food prices for low-income consumers are still increasing despite the inflation rate slowing down. This means that low-income consumers can afford even less nutritious food. The household food basket is part of the Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group with the help of women who live in low-income communities where they shop at 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba in Northern KwaZulu-Natal and Springbok in the Northern Cape. The average price of the household food basket, which contains 44 food items, was R5 466.59 in May and cost R46,29 (0.9%) more than in April and R136.29 (2.6%) more than in May 2024. A total of 33 of the food items cost more than a month ago, while the prices of the other 11 items deceased. Foods in the basket which increased in price in May 2025 by 5% or more, include: potatoes (7%), onions (23%), tea (5%), chicken feet (6%), carrots (8%), butternut (9%), spinach (5%), and peanut butter (5%). Food items that cost more were samp (2%), salt (2%), frozen chicken portions (2%), soup (2%), Maas (4%), beef liver (3%), beef (4%), wors (3%), fish (2%), cabbage (2%), Cremora (3%), bananas (2%), apples (2%), margarine (3%), polony (3%) and apricot jam (2%). The food items in the basket which decreased in price in May include rice (-5%), tomatoes (-9%), oranges (-23%), white sugar (-2%), full cream milk (-2%), green pepper (-2%) and tinned pilchards (-2%). ALSO READ: Steep increase in price of household food basket means more people will go hungry Household food basket cost more everywhere except in Springbok The average total price of the household food basket increased in Johannesburg (by R51), Durban (by R2.64), Cape Town (by R112.62), Pietermaritzburg (by R6.33) and Mtubatuba (by R87.51), while the price decreased in Springbok. The food basket decreased in price by R28.90. Statistics SA's latest Consumer Price Index for April 2025 shows that headline inflation was 2.8%, while food inflation was 3.3%, and the producer price index for March shows agriculture was at 2.4%. However, despite the lower inflation, low-income consumers are still struggling to afford enough food for their families. Workers who earn the National Minimum Wage of R28.79 per hour or R230.32 for an 8-hour day. In May, with 21 working days, the maximum wage for a general worker was R4 836.72. Black South African workers usually support four people on one wage, which means that, dispersed in a worker's family of four, the wage comes to R1 209.18 per person, far below the upper-bound poverty line of R1 634 per person per month. ALSO READ: Household food basket: prices drop, but not for core staple foods Low-income consumers cannot afford household food basket The average cost of a basic nutritional food basket for a family of four was R3 843.40 in May. 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 (R2 722.97) take up 56.3% of a worker's wage. Mervyn Abrahams, programme coordinator for the group, points out that workers only buy food after setting aside money for transport and electricity, leaving R2 113.75 for food and everything else. 'This means that in May we calculate that workers' families underspent on food by a minimum of 45.0%, having R2 113.75 left over after paying for transport and electricity. And with food for the month costing R3 843.40, there is no possibility of a worker being able to afford enough nutritious food for her family. 'If she uses the entire R2 113.75 to buy food, it will provide R528.44 per person per month for a family of four, again far below the food poverty line of R796.' ALSO READ: Consumer Goods Council calls for urgent expansion of zero-rated foods No money for nutritious food for children in household food basket He says women and children are particularly vulnerable. In May, the average cost to feed a child a basic, nutritious diet was R979.66, with an increase of R6.41 (0.7%) from April and R25.07 (2.6%) compared to a year ago. In May, the Child Support Grant of R560 was 30% below the Food Poverty Line of R796 and 43% below the average cost to feed a child a basic, nutritious diet of R979.66. It is clear that there is simply no money to feed children in low-income communities a proper, nutritious diet.
IOL News
28-05-2025
- Business
- IOL News
Rising food prices choke South African households
Food basket. South African families are increasingly burdened by soaring food prices, with many unable to afford basic nutrition as costs continue to rise dramatically. Discover the latest insights from the May 2025 Household Affordability Index and what it means for households across the nation. Image: File image In a stark reflection of the economic pressure faced by South African families, the latest Household Affordability Index for May 2025 revealed an increase in the cost of basic groceries across the country. The report highlighted the ongoing escalation of food prices as well as the widening gap between wages and the rising cost of living, particularly for the poorest households. Compiled monthly by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the food index showed that in May 2025, the average cost of a household food basket was R5 466,59. This was a month-on-month increase of 0.9% (R46.29) and a yearly increase of 2.6% (R136.29). Price movements signal ongoing struggles Of the 44 foods examined, 33 items saw price hikes in May 2025, with several staples experiencing increases of 5% or more. Potatoes, onions, and chicken feet exemplify the troubling trend; the cost of onions alone soared by an alarming 23%. Other notable increases included: Carrots - 8% Spinach - 5% Peanut butter - 5% Conversely, some relief was noted as 11 food items recorded price drops. Rice, tomatoes, and oranges saw significant reductions, with oranges falling by as much as 23%, although these decreases are overshadowed by the overall trend of rising costs. Nutrition under threat The index further showed that the average cost to feed a child a basic nutritious diet rose to R979.66. "With the Child Support Grant of R560 being 30% below the Food Poverty Line, many families are left struggling to provide adequate nutrition, forcing some to choose between essential food and hygiene products," the PMBEJD stated. Statistics South Africa's Consumer Price Index indicated food inflation is at 3.3%, with lower-income quintiles experiencing even higher rates of inflation, suggesting that the poorest households are unfairly burdened by rising costs. Often, essential expenses such as electricity and transport consume over half a worker's net wage, leaving limited funds for food. "The increased cost of living and stagnant wages indicate a looming crisis for many South African families. With essential food items becoming increasingly unaffordable, urgent action is needed to address these disparities and ensure that all citizens can afford basic nutrition and live with dignity. Policymakers must consider these findings, as the implications of inaction could be profound, affecting health, wellbeing, and societal stability," the PMBEJD said. The situation is further complicated by the geographical disparities in food prices. While Johannesburg's basket increased by R51,00, Cape Town recorded the most significant rise at R112,62. In contrast, Springbok residents witnessed the only decrease, highlighting the uneven burden of inflation spread across the country. Workers While the unemployment rate in the country sits at 32.9%, even those who are employed are struggling. The National Minimum Wage (NMW) is R28.79 per hour, R230.32 for an 8-hour day, R4,836.72 for a 21-day month. The NMW translates to R1 209.18 per person for a family of four, below the upper-bound poverty line of R1 634 per person monthly. The NMW in South Africa is failing to keep pace with living costs, leaving workers struggling to support their families, especially in black households where one wage often supports four individuals. The food index stated that electricity and transport together consume 56.3% of a worker's wage. The index further showed that families will underspend on food by 45%, with only R2,113.75 left after essential bills. The amount remaining for food provides R528.44 per person, below the food poverty line of R796. "The financial strain on workers underscores systemic issues within wage policies and cost of living adjustments, highlighting the urgent need for reforms to ensure that workers can afford basic necessities," the group said. BUSINESS REPORT Visit:
