Essential Food Pricing Monitoring Report – September 2024

The last 2 – 3 years have been characterised by a cost-of-living crisis that has stretched the budgets and compromised the well-being of many households. Recent inflation figures, which show 4.4% overall inflation and 4.7% food inflation, are a welcome indicator that consumers may experience some relief after a trying few years. While slowing inflation is a positive development, the effect of the inflationary episode is that prices have settled at higher levels and remain a challenge for many consumers. Figure 1 shows how the Food Basket tracked by the Pietermaritzburg Economic Justice & Dignity Group has evolved since September 2020, when the world was grappling with the effects of the pandemic until May 2024, when the inflationary episode started to subside. 2. The price of this food basket increased by more than 50% over this period and became less affordable for households earning the national minimum wage. Whereas a month of work at the minimum wage would have earned a worker R3 653.76 in October 2020 resulting in a R262.96 (7%) shortfall, that same worker would have earned R 4633.76 in May 2024 resulting in a R696.86 (13%) shortfall. This is on top of increased transport costs driven by high oil prices over the period. This comparison highlights that many households still face the risk of food insecurity given the relative levels of food prices and incomes. Essential Food Pricing Monitoring • September 2024 Recent pricing developments in foods BFAP (2022). Food Inflation Brief June 2022. Available online: https://www.bfap.co.za/wp-content/uploads/2023/04/Food-Infla tion-brief_June-2022.pdf Business Tech (2023). R1.3 billion loadshedding bill for South Africa’s biggest retailer. Available online: https://businesstech.co.za/news/ finance/706654/r1-3-billion-load-shedding-bill-for-south-africas-biggest-retailer/ NAMC (2020) The South African Food Cost Review. Available online: https://www.namc.co.za/wp-content/uploads/2021/03/Food-Cost- Review-2020-_-final.pdf Sihlobo, W (2024). The effects of the recent drought are starting to bite consumers in Southern Africa. Available online: https://wandilesi hlobo.com/2024/08/20/the-effects-of-the-recent-drought-are-starting-to-bite-consumers-in-southern-africa/#:~:text=South%20Afri ca’s%20maize%20harvest%20is,year%2Don%2Dyear). Mail and Guardian (2024). Limpopo farmers forecast crop shortages after cold front, black frost.