The Sunday Independent

Consumers continue to bleed as price hikes bite

TSHEGO LEPULE tshego.lepule@inl.co.za

DESPITE petrol prices having dropped by 9c per litre and diesel going down by 31c a litre this week, consumers are not expected to feel much relief with the price of a basic food basket said to be the highest since September last year.

According to the latest figures from the Pietermaritzburg Economic Justice and Dignity’s household affordability index, the average cost of a food basket for the country stood at R4 198.93 for April. This was an increase of R159.37, or 3.9% from March.

And for Cape Town households, the price of food rose by R161.31 from the previous month’s figure of R3 960.44.

“All household food baskets in April are at the highest level since September 2020. (Around) 36% of all foods in the average basket went up, the increases were across the board. Core staple foods, vegetables and meat went up,” said the organisation.

Increases were recorded in the following staple items:

● 30kg maize meal went up from R253.22 to R260.97, which was an increase of R7.75;

● A 10kg bag of white sugar went up from R165.74 to R168.74, an increase of R3;

● 60 eggs went from R99.81 to R113.76, an increase of R13.95.

●A 10kg bag of onions went up from R65.03 to R72.95, an increase of R7.92;

● Cooking oil 5 litres went from R108.30 to R118.03, an increase of R9.72.

South Africans are not the only ones feeling the brunt of soaring food prices – the UN Food Agency said this week that world food prices had increased for the eleventh consecutive month in April, hitting their highest levels since May 2014.

Head for consumer, food and agriculture at Rand Merchant Bank John van Tubbergh said food manufacturers were themselves faced with soaring prices of key agricultural products they use to manufacture basic foodstuffs.

“Amid a still weak economy, with households financially under strain, this leaves food manufacturers with some difficult decisions to make. (They) have already responded by cutting internal costs and optimising processes in order to help reduce the pressure on margins,” he said.

“South African consumers face many headwinds, key among them higher fuel prices, as well as increased municipal rates and taxes. All this is at a time when many working individuals have also had to accept zero salary increases, and even worse, outright pay cuts because of the severe economic impact of last year’s Covid-19 lockdowns.

“Consumers will, therefore, be very sensitive to any further sharp price increases. Dynamic food manufacturers no doubt would be aware of this in today’s ever more competitive corporate landscape.”

According to the last consumer price index (CPI) figures by Statistics SA, annual inflation for food and nonfood beverages went up to 5.7% in March from 5.2% in February.

And the products that recorded annual price increases that went over the 5.7% average included fats and oils at 13.4%, sugar, sweets and desserts at 7.4%, milk, eggs and cheese at 7.2%, fish 6.8% and meat at 6.7%.

Western Cape MEC for Social Development Sharna Fernandez said an additional R25million is being made available for food relief programmes in the province to assist those in need, particularly after the R350 temporary unemployment grant came to an end.

“We remain aware of the food crisis in the city, province and country as a result of the Covid-19 pandemic and its economic impact. While the provincial department of social development has made additional funding available for humanitarian relief, I am concerned that thousands of vulnerable people will be without any form of state support as a result of the special R350 Covid grant that came to an end on April 30,” she said.

FRONT PAGE

en-za

2021-05-09T07:00:00.0000000Z

2021-05-09T07:00:00.0000000Z

https://thesundayindependent.pressreader.com/article/281487869224806

African News Agency