by Lee-Yandra Paulsen
Data published by the Pietermaritzburg Economic Justice and Dignity group states the average cost of the household food basket has decreased by R18.03 (-0,4%) from R4 805.86 in September to R4 787.83 in October 2022, although the average cost of the food basket has increased by R470.28 (10,9%), from R4 317.56 in October 2021 to R4 787.83 in October 2022.
This is according to Programme Creator for Pietermaritzburg Economic Justice and Dignity Group, Mervyn Abraham who was a guest on VOC Breakfast on Thursday morning.
“0.4% is not even half a %percent on a basket that cost R4787. This is really a very small decrease. I think most households won’t feel the decrease at all,” said Abraham.
When the petrol price increases the food price usually increases too, although for a few months the cost of petrol has been lowered, yet the price of food had not been decreased. The relationship between the petrol price and the food price must be examined a bit more stated Abraham.
“Another issue that has emerged quite strongly in our October index is the fact that the 21 foods in our basket that are exempted from VAT have a higher inflation which is 12% compared to the foods that VAT applies to with an inflation of 9.8%,” commented Abraham.
According to him the government always says they are helping the poor by taking VAT away but just because the VAT is taken off the foods does not mean the inflation rate on these foods is lowered or more affordable. The state should instead try to help these people in the lower-income group by increasing the amount of money given to given to these households.
“We are expecting the current trends will go in 2023. We do not expect food prices to be lowered significantly moving forward and with the price of petrol fluctuating, so there will be tough times ahead for us during the festive season,” he added.
Photo: Pixabay
