Many struggle 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 says the food stuffs have to see her family of five until the next time she gets paid.

She barely affords to buy meat.

Makgato's home is one of many still struggling to catch up financially since post-Covid, 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 that from August to December, the price of canned pilchards dropped from 19% (R27.81) to 17% (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 these since the onset of the Covid-19 pandemic, said the increase in producer prices moved from R22.54 to R22.84 during the same period.

The report shows that some of the prices of food that the commission has tracked have started falling, albeit modestly.

"Our EFPM monitoring indicates that consumers are slowly feeling the benefits of easing cost pressures throughout the economy."

The cost of eggs has remained high even though egg producers are currently cheaper than they were in November 2023.

There were 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 of sunflower oil remained at its highest level since 2021.

Meiring said egg prices were normalising as "we are not paying R90 for 18 eggs anymore".

"But the declines that we are seeing in some of the items, are not providing enough relief given all the other issues that are happening, which include electricity going up and fuel prices.

"A lot of people are also not getting the inflation-related increases. It is a game of playing catch-up right now. There might be some relief in some of the aspects that we are seeing, but it will not assist households in bringing them significant relief," she said. 

Dr Frederick Kirsten from the school of economics at the University of Johannesburg said if lower-income families were spending money on those food items whose price was dropping they would benefit.

"Studies have shown that lower-income households spend a lot of their income on food and toiletries. The lower-income households might benefit but if it is only just a selected few [items] that are decreasing in price then it is still going to be a burden for the poor," said Kirsten.

"With electricity going up and the petrol price fluctuating, the lower income 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." 

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

"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 again in food inflation.

"Things like maize meal, rice, sugar beans and cooking oil, we are seeing increases - this is worrying because these food form part of the core stable. Women would go to the store to buy these items first," he said.

Makgato, 40, of Mankweng, Limpopo, said she prioritises 12,5kg of maize meal, flour, rice and cooking oil, among other items.

But her budget has gone up. She now spends between R1,500 and R1,700 to buy food and spends R600 for electricity.

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