South Africans to cut food costs by 47%
"The only genuine hope is that we are past the worst of it," says Wayne McCurrie.
Rising food, electricity, and transportation expenses, combined with a national minimum salary that does not meet the cost of living, will cause the average South African worker to underspend on food by at least 46.8%.
The Pietermaritzburg Economic Justice and Dignity (PMBEJD) Household Affordability Index for August 2022 indicates this. The PMBEJD predicted that a general worker earning R4 081.44 per 22days of work (R23.19 per hour) will only have roughly R1 700 left after paying for transportation and power (which collectively cost R2 371.50). Since a'minimum nutritional basket of food for a family of four' costs R3 212.97, PMBEJD forecasts that workers' families will spend at least 46.8% less on food.
"Progress in tackling the job problem is too slow," the report says, "and salaries for those who do have a job, and for persons who are able to receive some type of social aid, are still much too low, and are being devastated by increased prices of transportation, power, and food."
Food costs
According to the report, the estimated cost of feeding a child a basic nutritious meal in August is R820.26, a R72.96 increase year on year.
"In August 2022, the Child Support Grant of R480 is 23% less than the R624 food poverty line and 41% less than the average cost of feeding a child a basic nutritious diet."
According to the report, the child support allowance should be enhanced.
The index, which examined food prices at 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, and Springbok, concluded that the average household food basket is R4 775.59 in August, a 0.6% month-on-month increase.
However, the basket is R534.47 more expensive than last year, up 12.6%.
According to Wayne McCurrie, economist and portfolio manager at Ashburton Investments, while purchasing food, one is compelled to go down the value chain by shopping at Shoprite or Boxer rather than Pick n Pay .
"Most of the time, people will not cut back on their eating. Instead, they will eat less expensive foods. Perhaps they will eat less meat and choose house brands over pricey brand items in other categories.
