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TimesLIVE
02-07-2025
- Business
- TimesLIVE
Durban has cheapest grocery basket — but families still can't afford to fill it
While many South Africans are grappling with the high cost of food, new data show that food prices in Durban are lower than in most cities in the country. This is according to the latest Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) which revealed that the coastal city saw a month-on-month decrease of R115.65 in food costs, though prices are still R184.39 higher compared with the same time last year. The index, which tracks the prices of 44 basic food items from 47 supermarkets and 32 butcheries across six cities, found that the national average cost of the household food basket was R5,443.12 in June. Joburg remains one of the more expensive cities for groceries and the average basket cost increased slightly by R38.38 month-on-month, reaching R5,648.85. This was a 2% increase from June 2024. Cape Town saw a slight month-on-month drop of R31.95, bringing the basket to R5,397.23 though this is a sharp 5.8% increase compared with last year. Springbok, which often records the highest food prices, experienced a month-on-month decline of R107.51 but still registered a significant annual increase of R300.47, taking the average basket to R5,772.43. In smaller cities such as Pietermaritzburg, the basket rose to R5,147.25, up R96.45 month-on-month and Mtubatuba's basket increased by R27.59 to R5,427.65.
TimesLIVE
27-06-2025
- Business
- TimesLIVE
Despite VAT exemption, some zero-rated food prices increased in past 12 months
Despite being exempt from VAT, the prices of some zero-rated foods increased by 4.1% over the past 12 months. The latest Household Affordability Index report, compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD), found zero-rated foods in the household food basket increased by R113.66 (4.1%) from R2,775.45 to R2,889.11 in the year to June. It tracks the prices of 44 basic foods from 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba in northern KwaZulu-Natal and Springbok in the Northern Cape monthly. Basic food items like brown bread, rice, samp, mealie rice, vegetables and fruit are zero-rated for VAT, meaning they are taxed at a 0% rate to make them more affordable for consumers. In May certain offal and tinned or canned vegetables were added to the list. According to the report: in June 2024, 30kg of maize meal cost R301.28 while it cost R351.60 a year later; a 5kg bag of samp rose from R62.11 to R73.14; five litres of cooking oil from R149.75 to R158.65; six cans of pilchards increased from R151.15 to R154.28; and 25 loaves of brown bread rose from R378.66 to R381.01. The report states foods subject to VAT increased by R76.70 (3.1%) from R2,477.32 to R2,554.02. 'Twenty-two of the 44 foods in the total household food basket are subject to VAT. Foods subject to VAT make up 47% of the total cost of the household food basket. VAT on the total household food basket came to R333.13 in June,' the report said. 'This means 6.1% of the household food basket is made up of VAT. A tax of R333.13 is nearly the same cost of an average low-income household's requirement of 30kg maize meal per month. 'The total rand value of VAT on basic food stuffs is very high and removes money from the purse that could be spent on more food.' Overall the cost of a basic nutritional food basket for a family of seven increased by 3.9% (R249.15) from R6,403.10 to R6,652.25. Mervyn Abrahams of PMBEJD said in June families living on low-incomes may underspend on basic nutritional food by a minimum of 18%. As financial and economic circumstances worsen, so too does household health and nutrition. The gap between what women are able to buy and what they need to buy for proper nutrition widens Mervyn Abrahams of PMBEJD Of the 44 foods tracked in the basket, 19 foods increased in price. Foods that increased in price by 5% or more include onions (9%) and beef (5%). 'Households living on low incomes change their purchasing patterns in response to changes in affordability conditions,' said Abrahams. 'On low incomes, women buy the core staple foods first so that their families do not go hungry and for basic meals to be prepared. Where the money remaining is short, women have no choice but to drop foods from their trolleys or reduce the volumes of nutritionally rich foods in their trolleys.' This had negative consequences for health, wellbeing and nutrition, he said. 'As financial and economic circumstances worsen, so too does household health and nutrition. The gap between what women are able to buy and what they need to buy for proper nutrition widens.' The report states that the national minimum wage (NMW) 'is a poverty wage — it hurts workers, it reduces productivity in the workplace, and slows down economic growth. 'The maximum wage of R4,606.40 this June when disbursed in a family of four people is R1,151.60. This is below the upper-bound poverty line of R1,634 per capita per month. Set at such a low level, the NMW works to institutionalise the low-baseline wage regime and lock millions of workers into poverty. 'Small annual increments off such a low wage base (in rand value) — and which do not reflect inflation levels as experienced by workers, nor the actual cost of worker expenses — means that workers on the NMW are getting poorer each year. 'The minimum shortfall on food for a family is 48.5%. After paying for transport and electricity, workers are left with R1,963.43. If all of this money went to food, then for a family of four it would provide R490.85 per person per month. The food poverty line is R796 per person per month.'
IOL News
26-06-2025
- Business
- IOL News
Household food basket sees minor decrease, but relief remains uncertain for South Africans
Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) Household Affordability Index released on Wednesday indicated a slight decrease in the month-on-month: Household Food Basket of R23,46 from May to June 2025 Image: Armand Hough: Independent Newspapers The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) on Wednesday warned that concerns have grown over affordability despite household food basket seeing a slight dip in June. The PMBEJD released its Household Affordability Index for June on Wednesday, revealing a marginal month-on-month decrease in the average cost of its tracked household food basket, now sitting at R5 443.12. This represents a decrease of R23.46—or 0.4%—from R5 466.59 in May. However, the annual comparison tells a different story: the cost has risen by R190.36 (3.6%) from R5 252.77 in June 2024, raising concerns among civil society groups about the adequacy of such a decrease for struggling households. Video Player is loading. 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Next Stay Close ✕ Mervyn Abrahams, director of the PMBEJD, indicated that out of 44 foods monitored within the basket, 19 saw increases in their prices while 25 experienced declines. Notably, notable hikes included onions with a 9% increase and beef prices, which rose by 5%. Meanwhile, a few foodstuffs did see significant price drops, such as potatoes, which fell by 11%, and butternut, which decreased by 5%. 'Foods in the basket which decreased in price in June 2025 by 2% or more include rice, sugar beans, curry powder, full cream milk, fish, cremora, polony, and brown bread,' Abrahams said. Siyanda Baduza, a researcher at the Institute for Economic Justice (IEJ), said that the small decrease in the price of food will provide some relief. However, Baduza said this will do very little to ease the high cost of living faced by poor households, who now also have to contend with an increase in the fuel levy. 'Many households - almost half, according to the latest General Household Survey - rely on at least one form of social grant, and these remain woefully inadequate. This is especially true for the Social Relief of Distress (SRD) grant, which targets working-age people and is still only at R370 and thus worth significantly less now than it was at R350 in 2020.' Baduza added that similarly, the Child Support Grant, at R560, fell far below the food poverty line (almost R800) and was even further below the cost required to feed a child a nutritious food basket (R1 000). Evashnee Naidoo, Black Sash KZN regional manager, said though Durban in particular saw a decrease of R115.65 month-on-month, food prices do show an increase on an annual basis. 'Whilst there might be reductions in some basic food items, there are increases on other items which continue to challenge and burden middle to low-income households. This, combined with the increase in electricity prices, the nominal decreases in fuel prices, as well as high costs for basic hygiene, fail to reveal any savings in households,' she said. Naidoo added that food insecurity continued to rise and individuals and households were struggling to make ends meet and were even entering into debt to buy food and basic essentials. 'The inadequacy of government policies to cushion people from the impact of global insecurity, as well as a shrinking economy, which exacerbates inequality, poverty, and unemployment in South Africa amplifies Black Sash's call for a Basic Income Support for those aged 18-59 years old, as well as a Social Protection Floor which provides for the basic minimums for all who live in South Africa,' she said. Aliya Chikte, project manager at the Alternative Information and Development Centre (AIDC), said that the marginal decline in food prices in June offered little relief to most South African households struggling to survive on a monthly income of less than R8 000. 'According to Statistics South Africa's Income and Expenditure Survey, over 35% of household spending goes toward essential utilities - housing, water, electricity, gas, and other fuels,' she said. Chikte added that this means that very little is left over to cover the costs of a nutritious diet, resulting in widespread hunger and a simultaneous occurrence of undernutrition, micronutrient deficiencies, and obesity within communities due to the affordability and unemployment crises. BUSINESS REPORT
IOL News
26-06-2025
- Business
- IOL News
Impact of foot-and-mouth disease on meat prices creates concern among consumers
A customer browses the meat and poultry section. Food prices in South Africa rose to 4.4% in April from 3.3% in March, largely driven by meat, specifically beef, due to the outbreak of foot-and-mouth disease. Image: Bloomberg The Agricultural Business Chamber (Agbiz) and civil society groups have raised concern about rising prices of food in South Africa, largely driven by meat, specifically beef, due to the outbreak of foot-and-mouth disease. Data from Statistics South Africa (Stats SA) last week showed that food inflation increased to 4.4% in May from 3.3% in April, despite the headline consumer inflation remaining unchanged at 2.8%. Wandile Sihlobo, chief economist of Agbiz, acknowledged the acceleration of food price inflation but offered a note of cautious optimism. Sihlobo also noted that other products remained roughly unchanged while others experienced slowing price inflation. 'Regarding meat, the key issues that have dominated the headlines are the outbreak of avian influenza in Brazil and its potential impact on domestic poultry supplies and prices. The second concern relates to beef supplies following the outbreak of foot-and-mouth disease,' he said. 'The price increases we observe are essentially a continuation of the past few months, mainly due to base effects, the rising domestic demand, and the suppliers' window to pass on some costs they have experienced stemming from higher feed prices over the past couple of months before the recent cooling of maize and soybean prices.' 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 Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) conducts a monthly assessment on 44 basic food items as part of the Household Affordability Index. Mervyn Abrahams, director of the PMBEJD, said they noted that 33 out of the 44 items recorded an increase, with onions up by an alarming 23% when compared to the April index. 'Aside from onions, we also noted that items like potatoes, spinach, butternut, and margarine also recorded increases, which is equally worrying as these are products used on a regular basis in households across the countrym' he said. Abrahams these were difficult times where most people and families were struggling to make ends meet in what was an illustration of high living costs, meaning that access to food was becoming more difficult on a regular basis. 'Middle-income earners, as well as those in the low-income category, constitute a major portion of the country's population, and when studies and reports indicate that they are battling to make ends meet, that provides a worrying state of affairs in the country.' Evashnee Naidu, regional manager for Black Sash in KwaZulu-Natal, noted with concern the upward tick in food price inflation. Naidu said despite the annual increase in social grants, this continued to be eroded due to food price inflation. 'Those who are on social grants or on lower income thresholds severely bear the brunt of the ongoing increase in food prices. Food insecurity continues to plague South Africa, with seemingly no resolution in sight,' Naidu said. 'Government has to do more to curb ever-increasing food price inflation, and one of the measures could be making the Social Relief of Distress (SRD) grant a permanent form of Basic Income Support to those aged 18-59 years to ensure that individuals and households have some kind of safety net to cushion the blows of increasing prices in South Africa and ensuring that people have some kind of food security.' Aliya Chikte, project manager at the Alternative Information and Development Centre (AIDC), said more than half the population lives in poverty, leaving the majority without daily access to nutritious food. 'While this has been a persistent issue, the rising cost of healthy protein sources is particularly alarming, especially amid the growing prevalence of non-communicable diseases in the country,' she said. Chikte also said the continued exclusions from the SRD grant, along with anticipated increases in false exclusions of other social grants, was compounding the crisis and will deepen hunger. 'We are particularly concerned about the planned stringent criteria being applied to the Child Support Grant.' BUSINESS REPORT
IOL News
16-06-2025
- Business
- IOL News
Rising food costs leave Durban families struggling to make ends meet
Families in Durban are grappling with the rising cost of food, as recent findings reveal a significant increase in the average household food basket. With salaries remaining stagnant, many are left struggling to afford basic necessities. The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) shared its May findings, which showed the average cost of the household food basket increased by R46.29 (0.9%), from R5 420.30 in April 2025 to R5 466.59 in May 2025. Within a year, the average cost of the household food basket increased by R136.29 (2.6%), from R5 330.30 in May 2024 to R5 466.59 in May 2025. Subashni Govender, 50, a sales assistant, from Tongaat, said she was struggling to stretch her salary through the month. 'Food prices continue to climb. I am living from hand to mouth. It is difficult to even buy basic groceries, not to mention our utility bills which are so high. By the time we pay our bills, there is not enough for food. Thankfully, I have some people who help me financially, otherwise I would not be able to survive,' she said. 'Meat is so expensive that I have not eaten it in months. I only eat chicken when it goes on sale. I mostly eat vegetables. We cannot afford to buy food at normal prices and only shop during the sales. Oil is required in all our foods and it is also so expensive. I don't know how we are going to survive if te prices get any higher." Sangitha Rampersad, 52, a single mother of two, also of Tongaat, was laid off from work last week after her company was liquidated. She is stressed about being unemployed and the rising food prices. 'Basic foods like rice, flour, oil, sugar and other big items are expensive. At least if those basic items were lower in price, we could safely feed our family. We cannot afford luxuries and don't eat take-out. "I shop for food items that would last through the month and help with lunch as well. I always sit with the different supermarket catalogues and compare them to find the cheapest deals. What do you say to someone who cannot even buy a loaf of bread? It's crippling and upsetting,' said Rampersad. Sidney Chetty, 45, a mechanic, from Stanger, said as a breadwinner the rising food costs made it difficult for him to make ends meet. 'I am the only one working in my family of four, so we have to stretch my salary for the month. My children are young, and require many necessities, which are also expensive. Sometimes we don't have enough money to buy bread but we try to budget each month to ensure we have food on the table. I don't get a fixed salary for my job. Some months are better than others but we never have enough to to splurge of luxuries. The cost of living does not allow it. 'Just buying milk, bread and maybe baked beans, already sets me back. With the price of food rising, I don't know how much longer we can survive on my salary. I wished there was a coupon system in South Africa that could help us pay less for food,' said Chetty. The PMBEJD found that in May 2025, the average cost to feed a child a basic nutritious diet was R979.66. 'Over the past month, the average cost to feed a child a basic nutritious diet increased by R6.41 (0.7%). Year-on-year, the average cost to feed a child a basic nutritious diet increased by R25.07 (2.6%),' read the PMBEJD report. THE POST
