Pretoria - Consumers have seen a sharp increase in staple foods such as sunflower oil and bread and they are being overcharged by retailers.
According to the Competition Commission, South Africans may be facing opportunistic price increases of sunflower oil as processor prices have increased far more than sunflower seed prices this year.
It has also expressed concern that retailers have not passed on wholesale cost reductions for bread (700g loaf) in the past, resulting in widening retail margins.
This is detailed in the Competition Commission’s latest monitoring report on essential food pricing.
The Pietermaritzburg Economic, Justice and Dignity group, which has been monitoring food prices for low income groups for years, also issued its household affordability index for August this week. It monitors the same basic food products nationwide for especially low income households, and also noted an increase in staple foods.
In its latest publication, it noted that the cost of the average household food basket (the products which they monitor each time are the same and range from maize to bread) increased by R26.72 (0.6%) from R4 748.87 in July 2022 to R4 775.59 in August 2022.
It noted that cooking oil increased from August last year from R136.55 (for 5 litres) to R230.44 in July this year. From July to August there was yet another slight rise to R231.55.
The group’s data show that the price of cooking oil (5 litres) in their monthly baskets increased by R94.96 since August last year to now.
The data shows core foods contribute 55% of the total cost of the household food basket.
At an average cost of R2 624.93 in August 2022, these foods are relatively expensive in relation to the total money available in the household purse to secure food.
It also found the average cost to feed a child a basic nutritious diet increased by R72.96 (9.8%) from R747.30 in August 2021 to R820.26 in August 2022.
“On low incomes, women buy the core staple foods first so that their families do not go hungry,” it said.
Pretoria News