Consumers hit in pockets by increasing food prices

THAT polony sandwich cost a lot more last month than it did in January, after the price of bread, margarine and other staple foodstuffs increased and hit consumers where it hurts – in their pockets.

Key data from the February 2022 Household Affordability Index, which tracks food price data across the country, shows that last month the average cost of the household food basket was R4 355.70.

It shows that year-on-year the cost of the Cape Town household food basket increased by R309.77 (8%) from R3 893.37 in February 2021 to

R4 203.15 in February 2022.

Among the foods tracked were cooking oil, salt, onions, full cream milk, margarine, polony, tinned pilchards, sugar beans, chicken feet and gizzards, and frozen chicken portions, all of which have increased in price.

The Index, which tracks food price data from 44 supermarkets and 30 butcheries, in Johannesburg, Durban, Pietermaritzburg, Springbok and Cape Town, is published by the Pietermaritzburg Economic Justice and Dignity Group.

At the same time, the latest data from Statistics South Africa (Stats SA) shows that bread and cereal products have registered large monthly price increases.

Most affected are staples such as maize meal which is up by 3.7%, and white bread which shot up by 3.2% between January and last month. In rand terms, a loaf of white bread was on average 69c more expensive last month than in January – up to R16.16 from R15.47.

The February 2022 CPI statistical release from Stats SA shows that after decreasing steadily for eight months, annual bread and cereals inflation jumped to 3.7% last month, from 1.5% in January. This category includes grain-based foods made from wheat, rice and maize. Stats SA said the monthly change was also significant, representing the biggest monthly increase for this category since the beginning of 2019.

The Federation of Unions of SA (Fedusa) linked the price increases to runaway fuel prices caused by the Russian/Ukraine war. Petrol is expected to cost R24 a litre next month.

Fedusa general secretary Ajam urged the government to intervene. She said the price of sunflower oil was expected to increase from R59 for a two-litre bottle.

“Food security remains a critical risk factor as imports of sunflower oil, as a key example, (are) from Russia,” she said.

Agri SA echoed Ajam’s call for government intervention. It said fuel levies must be suspended to relieve pressure on food prices.

Spokesperson Kulani Siweya said Agri SA’s research and analysis had revealed that the Ukraine/Russia crisis would have a serious impact on South Africa’s food security.

The FairPlay movement, which represents the South African poultry industry, has meanwhile renewed its call for VAT in South Africa to be removed from most chicken portions to help counter the increase in food inflation after the conflict in Ukraine.

FairPlay founder Francois Baird said: “Chicken is the food product most consumed by lower-income households. That means zero-rating chicken would directly target the poor, who are most affected by food price rises.”