Skip to main content

Food prices: Rising cost burden

| Economic factors

Electricity price hikes have affected the food choices of lower-income households, the 2015 Bureau for Food & Agricultural Policy Baseline report reveals.

Focus groups held by the Pietermaritzburg Agency for Community Social Action found that consumers were moving away from maize meal to rice because rice has a shorter cooking time.

“Maize meal is fortified and has greater nutritional value than rice,” said the Western Cape minister of economic opportunities, Alan Winde, in releasing the report. “In addition, the price of rice is likely to increase as the rand depreciates, which will put additional pressure on lower-income families.”

The report also says the cost of an affordable healthy eating plan for a family of four (two adults and two children) increased by 36% from January 2011 to April 2015, exceeding the rate of consumer inflation, which was 27% over the same period.

Since a significant portion of a typical SA food basket is imported, the cost will be influenced by the likely continued depreciation of the rand exchange rate. This is expected to drive food price inflation higher over the medium term despite the fall-off in commodity prices.


Pin It

Related Articles

By: Hanno Labuschagne - MyBroadband An anticipated strengthening of the rand and slipping global oil prices could result in lower petrol prices at the pumps next month.
By: Myles Illidge - MyBroadband Eskom has asked the National Energy Regulator of South Africa (Nersa) for a 36.15% electricity tariff hike for the customers it directly supplies and charges, Daily Maverick reports.
By: Yogashen Pillay – The Mercury Economists are predicting a big drop in petrol and diesel prices next month, saying it will bring much-needed relief to under-pressure consumers.
By: Jason Woosey - IOL Petrol and diesel prices are set to come down from Wednesday, June 5, according to a statement released by the Department of Mineral Resources and Energy (DMRE).
By: Opinion – IOL Business Report South Africans have been collectively waiting with bated breath for some small financial reprieve from the relentless price hikes of the past few years that have driven them to the brink of despair, chief among t...