We call on the Reserve Bank to monitor much more stringently inflationary increases on food, electricity and transport and their impact on low-income households and the broader economy; and act decisively when such increases threaten the affordability levels of low-income households and damage the economy.
2021 will see a deepening household affordability crisis with core household expenses like transport, electricity, and food, increasing way above inflation, whilst wage increases will continue to remain low.
The average cost of the Household Food Basket increased through September 2020 to November 2020; prices then dipped slightly in December 2020 and have increased again in January 2021.
Food prices are rising as we approach the Festive Season.
Food price data over the past three months shows that the average cost of the Household Food Basket has increased by R161,89 or 4,2%, taking the total cost of the basket in November to R4 018,22.
We commemorate World Food Day 2020 in the midst of a pandemic, which requires proper nutrition to build strong and resilient immune systems to resist contracting Covid19 and recover.
PMBEJD releases a new Household Affordability Index with food price data from Johannesburg, Durban, Cape Town, Springbok and Pietermaritzburg.
The deepening household affordability and food crisis in South Africa, exacerbated by Covid19 compelled us to expand the scope of the Household Affordability Index beyond Pietermaritzburg.
Food prices up again in August.
The cost of the PMBEJD Household Food Basket increased sharply between March and April and continued its upward trend, albeit at a slower rate until June. July saw a drop in the cost of the basket. It appeared, on the trends in our data, that food prices were stabilising but August is again showing an increase.
A call to support the introduction of a Basic Income Grant for workers to invest in a livelihood, create work, and generate greater demand to kick-start a new economic trajectory.
The prices of foods on supermarket shelves whilst still increasing seem to be stabilising albeit off a higher base. The PMBEJD Household Food Basket has increased by 8,2% (R265) between March 2020 and June 2020, and now costs R3 486.
The report is based on food price data in Pietermaritzburg (with comparisons between pre-lockdown March 2020 and May 2020) and conversations with women in queues and in supermarkets.
