Following a year-on-year rise of 2.8% in the food basket noted in December 2024, civil society organisations are echoing concerns that consumers will struggle to make ends meet as they welcome the New Year. File photo
The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) has sounded the alarm as South Africans face a daunting increase in food prices at the beginning of January.
Following a year-on-year rise of 2.8% in the food basket noted in December 2024, civil society organisations are echoing concerns that consumers will struggle to make ends meet as they welcome the New Year.
Mervyn Abrahams, Coordinator of the PMBEJD, today said the start of the year was a difficult period for many families as it marked the return to school for the children.
“What we do know is that in December 2024 food prices remained high across the general spectrum in line with the general trend throughout the year of high food prices,” he said.
“So, what we observed was that the December 2024 food basket was up by R145.18, which equates to a 2.8% increase on the food basket.”
Abrahams added that the key drivers for the increase in the December food basket were spinach, bananas, apples, tomatoes, and apricot jam, which had increases that varied from 2% to 9%.
“It is equally important to point out that there were some items such as gizzards and polony, as well as potatoes and onions, which recorded decreases that varied from 2% to 14%.”
Abrahams said that according to the December data, the country’s major cities—Cape Town, Durban, Johannesburg, Mtubatuba, Pietermaritzburg, and Springbok all recorded increases in basket food prices varying from 2.2% to 4.2% year-on-year.
He added that the increase in the price of petrol indicated that things were going to get a little tougher, and one of the indicators of such difficulty will be in the price of food.
“It is evident that January is, and will be, a difficult month for many people. For instance, the impending closure of the steel manufacturing operation in Newcastle is going to have an untold impact in an already stifled economic environment,” Abrahams said.
Siyanda Baduza, a researcher in the basic income project at the Institute for Economic Justice (IEJ), said that the cost of living was still elevated despite food inflation rates easing over the last few months.
“This has often been framed as a relief for all consumers, but in reality, it is not. The first issue is that it is still inflation, so prices are still increasing, just at a lower rate. This is particularly concerning when you consider that we are still in a cost of living crisis, which has persisted over the last few years,” he said.
Baduza added that this means that such decreases need to happen at a much larger scale and for longer to materially impact the living conditions for most.
“This is also, of course, complicated by the fact that fuel prices are increasing, which means that the slowdown in price increases will likely not be sustained for long. The impact is even worse for grant recipients, many of whom are the most impoverished in our country.”
Evashnee Naidu, Black Sash's regional manager in KwaZulu-Natal, said the two most recent fuel hikes also impacted food prices and had a negative impact on those living on social grants and the poorest of the poor.
“We eagerly await the State of the Nation address by the President, as well as the Budget Speech, both of which will happen in February, and hope to note significant increases to social grants, in line with inflation, as well as a commitment to extending the Social Relief of Distress Grant and a move to make this grant permanent,” Naidu said.
BUSINESS REPORT
Related Topics: