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Cost of basic food basket outpaces minimum wage

| Economic factors

Rising fuel prices are continuing to push up the cost of food, with the price of a basic nutritional basket for a seven-person household now sitting 12.4% above the national minimum wage.

This is happening even as official figures point to moderating food inflation, suggesting that many households are still spending at least half of what is required to meet basic nutritional needs.

Data from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) shows that increases in staple foods and protein items drove up the cost of a typical household basket in April. The organisation also cautioned that authorities should keep a close watch for possible “opportunistic price increases” from producers and retailers.

The group reported that the average household food basket rose to R5,452.09 in April, increasing by R123.56, or 2.3%, compared to March. By comparison, the national minimum wage equates to R5,890.32 for a standard 45-hour work week.

On an annual basis, the basket cost edged up by R31.79, representing a modest 0.6% increase.

Official data shows easing inflation

Despite these increases, official statistics indicate that food inflation has been slowing. Statistics South Africa reported that annual inflation for food and non-alcoholic beverages eased to 3.6% in March, down from 3.7% in February and 4.4% in January.

Several categories have entered deflation, including fruit and nuts, vegetables, cereals, as well as milk, dairy products and eggs.

Prices in the dairy and eggs category have now fallen for ten consecutive months. Meanwhile, cereal prices dropped by an average of 1.0%, with staples such as maize meal, rice, bread and flour all cheaper than a year ago.

Meat prices also declined for a second straight month, with beef products—including stewing beef, steak and mince—recording lower prices between February and March.

Essential items still rising

However, PMBEJD noted that increases in key essentials continue to place upward pressure on food costs. Onions saw one of the steepest monthly increases, rising by R22.43, while tomatoes climbed by R13.07.

Protein prices also contributed to the rise. Frozen chicken portions increased by R10.12 month-on-month, while beef and fish went up by R6.12 and R9.73, respectively.

Although some staples like maize meal became slightly cheaper, higher prices for items such as rice and cooking oil added to overall cost pressures.

The cost of core foods—those prioritised by households—also rose. PMBEJD found that these items increased by R56.41, or 2%, to reach R2,873.16 in April.

“These foods are non-negotiable purchases, regardless of rising prices,” the group said.

Nutrition gap widens

The data further points to a growing gap between actual spending and the amount needed for adequate nutrition. According to PMBEJD, a basic nutritious food basket for a family of seven cost R6,618.99 in April.

This is R1,166.90 more than the average household food basket, indicating that families are underspending on nutrition by at least 18%.

“When budgets fall short, women are often forced to remove items from their shopping or reduce quantities of nutritious foods,” the group noted.

Child nutrition is also becoming more expensive. The cost of feeding a child a basic nutritious diet rose to R964.94 per month in April, compared to the Child Support Grant of R580.

PMBEJD added that the grant remains 32% below the food poverty line and 40% short of covering the cost of a basic nutritious diet for a child.

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