Consumers and businesses hit hard by rising cost of food
It showed the average cost of the household food basket increased by R30.27 (0.6%), from R4,775.59 in August 2022 to R4,805.86 in September 2022
Shoppers have been hit once again by rises in food prices and are now paying R600 more for the same basket of food than they did last year.
The September 2022 Household Affordability Index, compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD), tracks food price data from across the country.
It showed the average cost of the household food basket increased by R30.27 (0.6%), from R4,775.59 in August 2022 to R4,805.86 in September 2022.
With October results yet to be released by PMBEJD, the Dispatch visited three leading retail chains in East London and compared the average price of eight core food items to their prices back in August:
1kg of potatoes had decreased by R1.83 to an average of R14.83; 750ml of sunflower oil had decreased by R4.33 to an average of R40.32; A dozen large eggs increased by R1 to an average of R33.98; A chicken tray decreased by 67c to R74.32; A loaf of brown bread stayed the same at an average of R10.83; 1 litre of milk increased by 67c to an average of R17.32; 1kg of butternut increased by R1.33 to an average of R17.32; and1kg of maize meal increased by R1.50 to an average of R15.99.
Certain items which saw a major spike at the beginning of this year were down, and while the price of cooking oil shot up dramatically it had since seen a 9% decrease which equates to R20.68 for a 5-litre bottle.
For the past three months, fuel prices and global food commodity prices have come down, but this has not been reflected in the price of everyday items of a local shopping basket, Mervyn Abrahams, of PMBEJD, said.
Benji Gane, co-owner of beloved café Ginger & Co, said the restaurant had to adjust its menu prices due to rising food prices.
“Everything has gone up. We had our first price increase in two years because of things going up.
“Small businesses try to absorb the increases, but we had to relook at our business model and percentages.
“It can put your business at risk if you keep absorbing the costs because of the fear of passing on the price increase.
“We do a lot of shopping for fruit and vegetables and have seen quite a rise in these as well.”
The Consumer Price Index for September 2022 released by Stats SA saw annual consumer price inflation at 7.5%, with food and nonalcoholic beverages contributing two percentage points to the CPI rate.
Food and nonalcoholic beverages also saw a year-on-year increase of 11.9%.
Border-Kei Chamber of Business executive director Lizelle Maurice said businesses were finally having to make tough decisions to increase their prices.
“The increasing rise in food prices is definitely affecting businesses like restaurants and convenience stores.
“The cost of their sales has suddenly increased.
“At the same time, food prices have gone up, as have interest rates and fuel — all of a sudden people have less, so most are looking at how to shop cleverly these days.”
Maurice said across the metro both small cafés and major chain restaurants had not made a comeback post-pandemic, with no help from the crippling cost of produce.
“Customers are doing selective buying, RJ’s has closed, Mugg & Bean at Hemingways has closed, as well as eateries in Vincent.
“Yes, the high-end customer is still eating out but the middle-income earners, not as much.”
November is set to start with more bad news for consumers, with another fuel price hike.
The latest data from the Central Energy Fund (CEF) points to a 48 cents per litre hike for petrol and a jump of around R1.61 per litre for diesel, with current market conditions continuing the pressure on local pricing. According to the CEF, the latest projections for fuel prices in November are as follows: Petrol 93 & 95 will go up by 48 cents per litre; Diesel 0.05% will go up by R1.61 per litre; Diesel 0.005% will go up by R1.64 per litre; Paraffin will go up by 78 cents per litre.
Fuel price changes will come into effect on Wednesday November 2, with an official announcement expected in the coming week.