The cost of the household food basket saw a minor decline in February 2025, offering slight relief to low-income South African households. However, the persistently high prices of staple foods continue to strain household budgets, making it difficult for many families to afford a nutritious diet. Without a significant drop in the prices of core food items or an increase in wages, financial hardships are expected to persist into 2025.
Household Food Basket Costs in February 2025
According to the Household Affordability Index, the cost of the household food basket stood at R5 313.22 in February. This figure reflects a decrease of R120.48 from January but remains R35.92 higher than in February 2024, when it was priced at R5 277.30. Data for the index is collected from 47 supermarkets and 32 butcheries across major cities, including Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba, and Springbok.
While the overall cost of the household food basket decreased, key staple food prices remained stubbornly high. These staples include maize meal, rice, cake flour, white sugar, samp, and cooking oil. These core items constitute a significant portion of the household food basket and are prioritized by families to ensure food security. The lack of price reductions in these staples continues to place immense pressure on low-income households.
Trends in Food Price Fluctuations
In February, the prices of 11 food items in the household food basket increased, while 32 items experienced a price drop. Oranges were the only product with no change in price. The decline in prices was observed across multiple categories, including:
- Eggs and Dairy: Prices fell for these essential protein sources.
- Vegetables: Carrots (-13%), butternut (-8%), onions (-7%), and potatoes (-7%) saw significant price decreases.
- Meat and Fish: Chicken feet (-6%), beef (-5%), and canned fish became more affordable.
- Sandwich Fillers: Peanut butter (-5%), jam, and polony also saw price reductions.
- Bread: White and brown bread prices dropped by 5%.
Despite these positive changes, the cost of margarine rose by more than 5%, while stock cubes increased by 3% and apples by 2%. The increase in the price of essential items further complicates food affordability for struggling households.
The Impact of VAT on the Household Food Basket
The household food basket includes 22 VAT-applicable food items, which made up 47% of the total cost in February. The zero-rated food items in the basket amounted to R2 829.12, whereas VAT-included items cost R2 484.10. The VAT on the total household food basket reached R324.01, contributing to 6.1% of the total cost.
The potential 2% increase in VAT proposed by the government to address the budget deficit could worsen the financial burden on low-income consumers. The R324.01 tax currently imposed on the food basket is nearly equivalent to the cost of a 30kg bag of maize meal (R341.52). If VAT were to rise, consumers would face even greater financial challenges, reducing their ability to purchase sufficient food for their families.
Minimum Wage vs. Household Food Basket Costs
The national minimum wage in February was R27.58 per hour, translating to R220.64 per day and R4 412.80 per month for a general worker. Given that Black South African workers often support four family members on a single wage, this income is grossly insufficient to cover essential expenses.
With electricity and transport costs consuming 59.9% (R2 642.97) of a worker’s wage, only R1 769.83 remains for food and other necessities. This leads to an underspending on food by 52.6%, leaving families without adequate nutrition. Even if the entire remaining income were spent on food, it would only provide R442.46 per person per month—far below the food poverty line of R796.
Additionally, feeding a child a basic nutritious diet in February cost R951.64, whereas the Child Support Grant provided only R530. This is 33% below the food poverty line and 44% below the actual cost of feeding a child adequately.
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While the overall household food basket cost declined slightly in February, the persistent high prices of staple foods continue to make it difficult for low-income households to afford essential nutrition. The additional burden of VAT, coupled with inadequate wages, means many South Africans remain financially vulnerable. Addressing food affordability requires systemic changes, including reducing the prices of core staples, increasing wages, and reconsidering VAT policies to ensure that basic food remains accessible to all citizens.
