The November 2024 Household Affordability Index, released on Wednesday, showed a steady increase in the price of essential groceries, putting further strain on already stretched household budgets.
Mervyn Abrahams, the Programme Coordinator of the Pietermaritzburg Economic Justice & Dignity Group, said, “Data from November indicates that while the household food basket is subdued, due mostly to lower vegetable prices, the basket on average continues to increase, albeit slowly.
“At a total average cost of R5 361.04, the household food basket is still unaffordable for many, and with the additional volumes required to be bought, and the competition with Christmas clothes, and the January school opening, this period will be a hard one for most South African families,” Abrahams added.
Month-on-month the average cost of the Household Food Basket increased by R12.39 (0.2%), while year-on-year it rose by R46.40 (0.9%).
The index, which tracks the prices of 44 basic food items across South Africa, found that the cost of the food basket increased by 0.2% month-on-month and 0.9% year-on-year. While some food items like potatoes, rice, and carrots saw price decreases, staples like maize meal, sugar, onions, and bread all became more expensive.
Foods in the basket which increased in price in November 2024 by 5% or more include stock cubes, chicken feet, chicken livers, bananas, and oranges, the report states.
This means that even basic meals are becoming more costly for families to prepare.
The food index, released just ahead of the shopping event of the year, Black Friday, cements the plight of consumers in the country as Debt Rescue revealed South Africans would be prioritising grocery bargains over other purchases.
Debt Rescue’s survey showed that a staggering 83% of consumers said they will be hunting for Black Friday deals to put more food on the table this year.
The survey results showed that, although a significant 66% of people intend to participate in Black Friday despite their economic challenges, they will be spending far less than they did in 2023, and mostly on household necessities like food, toiletries, clothing, electronics and other tech items.
The survey polled participants between the ages of 25 and 65 to gauge consumer spending patterns, and overall sentiment toward the value of Black Friday promotions.
CEO of Debt Rescue, Neil Roets said the survey insights suggest that consumers are tightening their purse strings even further this year and will spend purely as a means to save money in the long run.
“2024 has been another tumultuous year and people are hanging on by a very thin thread. Black Friday is being viewed as a means to provide them with short-term aid to save on items they need and to free up a little cash at the same time,” Roets said.
“For far too long, ordinary South Africans have been carrying the financial burden of the highest interest rates the country has experienced in over a decade, along with relentless cost-of-living increases that include ever-escalating food and electricity prices, and petrol prices that remain unreasonably high - despite the miniscule cuts in recent months. This is being exacerbated by a rapidly escalating water scarcity crisis, which will inevitably lead to a spike in water prices,” Roets further said.
“At the risk of sounding like a broken record, it is deeply concerning that there is not enough intervention from the major food retailers nor the country’s leaders to provide any real financial relief for South Africans – especially now with citizens bravely sprinting toward the end of the year in the hope of enjoying some kind of festive cheer. Sadly, the reality is that, for most, this means getting into even more debt, and starting the new year with an even greater financial deficit,” Roets said.
BUSINESS REPORT