Many struggling with high cost of food

Sarah Makgato says she spends up to R1,700 on groceries. This is nearly double what she was paying for the same items in 2020.

Makgato, who earns R5,500, said the items have to feed her family of five until the next time she is paid. She said she can barely afford meat.

Makgato's household is one of many struggling to catch up financially since the Covid-19 pandemic, according to Jacolize Meiring from the Unisa Bureau of Market Research.

On Thursday the Competition Commission released its latest Essential Food Pricing Monitoring (EFPM) report, which showed from August to December the price of canned pilchards dropped from R27.81 to R27.46.

“This illustrates the restraint shown by producers and retailers in their pricing behaviour for canned pilchards continues,” the commission said.

The EFPM report tracks prices of selected essential food items. The commission has been tracking prices since the onset of the pandemic. The report shows some food prices the commission has tracked have started falling, albeit modestly.

“Our EFPM monitoring indicates consumers are slowly feeling the benefits of easing cost pressures throughout the economy,” it said.

The cost of eggs has remained high, but there are also lower average retail prices for brown bread. The commission said despite better and more responsive price transmission for sunflower oil, the producer to retail spread for the item remained at its highest level since 2021.

Meiring said egg prices were normalising as “we are no longer paying R90 for 18 eggs. But the declines we are seeing for some items are not providing enough relief given all the other issues that are happening, which include increasing electricity and fuel prices.

“A lot of people are not getting inflation-related increases. It is a game of playing catch-up,” she said.  

Dr Frederick Kirsten from the school of economics at the University of Johannesburg said: “Studies have shown  lower-income households spend a lot of their income on food and toiletries.

“With electricity going up and the petrol price fluctuating, lower-income households won't have a net benefit given all the other costs of living issues in SA. The proposed VAT [increase of 0.5 percentage points] will also reflect on their money.” 

Mervyn Abrahams, programme coordinator for the Pietermaritzburg Economic Justice & Dignity Group, said the organisation has seen an uptick in food prices.

“In February we saw a 2% decrease in our food basket. In March we are seeing a 0.2% increase. It is not yet a trend but we are beginning to see an uptick in food inflation.

“For items such as maize meal, rice, sugar beans and cooking oil we are seeing increases. This is worrying because these foods form part of the core stable.”

Makgato, 40, of Mankweng in Limpopo, said she prioritises 12.5kg of maize meal, flour, rice and cooking oil, among other items. She spends between R1,500 and R1,700 on food and spends R600 for electricity.

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