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Household affordability index reveals slight food price decline amid ongoing struggles

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The July 2025 Household Affordability Index unveiled a complex landscape for South African consumers as the average cost of a staple food basket slightly decreased to R5,442.72, a modest dip of R0.41 from June 2025.

Despite this month-on-month improvement, a stark year-on-year increase of R190.57 (3.6%) painted a troubling picture for households relying on basic foodstuffs.

Compiled from 44 basic food items across 47 supermarkets and 32 butcheries in regions including Johannesburg, Durban, and Cape Town, the report reflects a nuanced reality.

It showed that of the tracked foods, 17 saw price increases while 26 experienced reductions.

Only one food item remained unchanged, presenting a slightly positive note for consumers grappling with financial pressures.

Price variability: the details behind the numbers

Individual price movements revealed significant fluctuations within the basket.

A few noteworthy increases included beef that was up by 8%, beef tripe, up by 7% and butternut, up by a staggering 20%.

Moreover, items such as full cream milk, chicken feet, and fish also experienced notable increases between 2% – 4% each.

Conversely, several staples saw price reductions, particularly in fresh produce and pantry items.

  • Bananas: Down by 13%
  • Oranges: Down by 15%
  • Maize Meal: Down by 5%

Regional disparities in household costs

The data offered distinct insights into the affordability challenges faced in various regions.

Johannesburg and Durban saw increases in their food baskets, with Johannesburg rising to R5,656.43 (up 0.1% month-on-month) and Durban at R5,358.09 (up 0.9%).

In contrast, Cape Town’s basket decreased slightly to R5,371.35, despite a steep 6.7% increase year-on-year, indicating the intricacies of regional price variability.

Pietermaritzburg notched down to R5,092.82, and Springbok dropped to R5,735.50, while only Mtubatuba showed positive movement with an increase of R60.32 (1.1%) month-on-month, confirming that affordability issues are not uniformly felt across the nation.

The broader economic context

Against this backdrop of fluctuating food prices, the broader economic context cannot be ignored.

Statistics South Africa recently reported headline inflation at 3%, affecting low-income households at even higher rates, and food inflation running at 4.7%.

This paints a stark picture for many South Africans, particularly as the National Minimum Wage of R28.79 per hour continues to be insufficient for supporting families.

Notably, while the average monthly cost to feed a child a basic nutritious diet is R957.41, the Child Support Grant of R560 falls 30% below the food poverty line of R796.

This disparity highlights the urgent need for governmental intervention to support vulnerable households struggling to provide for their families.

A call to action

As food prices fluctuate and the cost of living continues to rise, it is paramount for stakeholders to address the dire situation faced by many families across South Africa.

Workers contribute to their family’s well-being and often find themselves financially strained, unable to afford nutritious food.

The decline in food prices, though welcome, is not enough; comprehensive strategies are needed to enhance food security and support economic resilience in the face of ongoing challenges.

BUSINESS REPORT 

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