November 28, 2024

South African households are grappling with rising grocery costs

South African households are grappling with rising grocery costs as the latest Household Affordability Index reveals a steady increase in essential food prices, compounding financial pressures on families. Released in November 2024 by the Pietermaritzburg Economic Justice & Dignity Group, the index highlights that the average cost of a household food basket rose to R5,361.04, a figure that remains unaffordable for many South Africans.

Key Findings from the November 2024 Index:

- The household food basket increased by R12.39 (0.2%) month-on-month and R46.40 (0.9%) year-on-year.

- Although prices for vegetables like potatoes, rice, and carrots decreased, staples such as maize meal, sugar, onions, and bread became more expensive.

- Items with price hikes of 5% or more include stock cubes, chicken feet, chicken livers, bananas, and oranges, making even basic meals costlier.

Mervyn Abrahams, Programme Coordinator of the group, emphasized the difficulty households face during this time of year, with additional expenses for Christmas and January school preparations adding to the financial strain. He noted that while some prices were subdued due to lower vegetable costs, the overall cost of the basket continues to rise.

Black Friday Priorities Shift Toward Essentials Debt Rescue's consumer survey underscores the financial strain, with 83% of South Africans prioritizing grocery bargains during Black Friday. Although 66% of respondents plan to participate in Black Friday sales, most intend to spend less than in 2023, focusing on essentials like food, toiletries, and clothing.

Debt Rescue CEO Neil Roets noted that Black Friday is seen as a survival mechanism for many consumers, allowing them to stretch their budgets further amidst rising costs. He criticized the lack of meaningful interventions from food retailers and government leaders to provide financial relief.

Broader Economic Challenges Roets highlighted the following compounding issues:
- High interest rates, the highest in over a decade, continue to weigh heavily on consumers.
- Escalating costs of living, including food, electricity, and petrol prices, further erode disposable income.
- Water scarcity is driving up water prices, adding another layer of financial stress.

Outlook for South African Families As 2024 draws to a close, many South Africans face a bleak festive season, with rising debt and a greater financial burden expected in the new year. Advocacy groups are calling for stronger interventions to ease the pressure on households and ensure families can meet their basic needs without spiraling further into debt.