{"id":640329,"date":"2022-11-03T16:44:44","date_gmt":"2022-11-03T14:44:44","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=640329"},"modified":"2022-11-03T16:44:44","modified_gmt":"2022-11-03T14:44:44","slug":"16-foods-youre-paying-way-more-for-in-south-africa-right-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/640329\/16-foods-youre-paying-way-more-for-in-south-africa-right-now\/","title":{"rendered":"16 foods you’re paying way more for in South Africa right now"},"content":{"rendered":"

The latest Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD) shows that food prices in South Africa remain stubbornly high, with warnings that the pressure at the tills will linger for longer.<\/p>\n

For October 2022, the average cost of the Household Food Basket is R4,787.83. Month-on-month, the average cost of the basket decreased by R18.03 (-0.4%), from R4,805.86 in September 2022.<\/p>\n

Year-on-year, the average cost of the basket increased by R470.28 (10.9%).<\/p>\n

Notably, the year-on-year increase is lower than food inflation tracked by Stats SA for September but still far outstrips headline inflation, which was recorded at 7.5% in September 2022, down marginally from 7.6% in August 2022.<\/p>\n

Food and non-alcoholic beverages increased by 11.9% year on year, up from 11.3% recorded the month prior.<\/p>\n

While a month-on-month drop in prices – however marginal they may be – provides some relief, the wider narrative of a healthy, nutritionally complete basket of food being out of reach for many households in South Africa persists.<\/p>\n

According to the PMBEJD, in October 2022, the cost of a basic nutritional food basket for a family of four persons is R3,234.69 – this is against the national minimum wage of around R3,800 a month for someone who works a full month.<\/p>\n

However, this discounts monthly essentials such as electricity, transport, rent and other bare necessities, which puts households in a very precarious position, with the PMBEJD calculating that workers\u2019 families will underspend on food by a minimum of 50.6%.<\/p>\n

Worse still, analysts anticipate inflation staying higher for longer, with a drop-off only expected in the middle of 2023.<\/p>\n

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The Bureau for Economic Research (BER)\u2019s outlook for CPI sits around 7% year-on-year for the next several months, coming off the back of annual producer price inflation (PPI), which remains elevated.<\/p>\n

The most significant contributors to the annual spike were coke and petroleum, which are up a considerable 34.2% year-on-year, added the economists. This is followed by food products, beverages, and tobacco products \u2013 increasing by 12.1% year-on-year.<\/p>\n

Of these indicators, a concern is that manufactured food products increased by a higher-than-expected 1.3% month-on-month in September after a 1% rise in August, the BER said, which suggests that there is\u00a0more pressure to come on consumer food prices.<\/p>\n

This concern over food prices has been exacerbated by the fact that the cost of diesel has increased. Diesel is a primary input for manufacturing, agriculture, and trucking. Its increase is set to have direct knock-on effects carried onto consumers.<\/p>\n

Food producers are likely to adjust prices to accommodate the rising cost of fue,\u00a0especially the agricultural industry, as fuel accounts for 13% of its input costs, said chief economist at the Agricultural Business Chamber of South Africa Wandile Sihlobo.<\/p>\n

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Food prices: October 2021 to October 2022 \u2013 big changes<\/strong><\/p>\n

The PMBEJD basket comprises 44 core food items most frequently purchased by lower-income households, who make up most households in the country.<\/p>\n

Of the 44 food items tracked, only four are lower in price than a year ago, with one item unchanged. The remaining 39 items have all increased in price – 16 of which have seen price jumps far out of whack with inflation.<\/p>\n

Some of the biggest price changes (\u00b110%) include:<\/p>\n